500.com to buy bitcoin miners for $8.5 million

The NYSE-listed Chinese online-lottery services provider 500.com Limited has signed a contract to purchase 5,900 bitcoin mining devices.

https://t.co/W2DEWTapcv Limited Entered into Two Agreements to Acquire Bitcoin Mining Machines https://t.co/0RHfftR7qb

— 500.com (@500lottery) February 2, 2021

The deal was worth 55.2 million yuan (~$8.5 million). Delivery is expected in the second quarter of 2021.

Under the second agreement, 500.com will purchase up to 10,000 miners in the current year under certain conditions. The company is required to post a deposit of 2,000 yuan (~$310) per device, or 10 million yuan (~$1.5 million) in aggregate.

If all 15,900 miners are delivered, the online-lottery services provider expects its hashrate to increase by about 1,000 PH/s.

In January 2021, the company reported the purchase of devices S17, T17, S9 and M20s for $14.4 million. Under the terms of the agreement with unnamed partners, 500.com will issue 11.9 million shares at $1.21 per share.

Earlier, Blockstream purchased WhatsMiner mining devices from MicroBT for $25 million.

In January, bitcoin miners’ revenues reached their maximum since December 2017 — $1.09 billion.

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