500.com To Purchase Bitcoin Mining Machines
500.com Ltd. – ADR (NYSE:WBAI) is an online gambling services company based in Shenzen, China. It provides online lottery services and information tools on behalf of China Sports Lottery Adminstration Center.
What Happened: 500.com filed form 6-K with the United States Securities and Exchange Commission on Thursday.
In connection with the Good Luck Information Technology Co. Ltd., 50% of the subscription will be settled in U.S. dollars and 50% will be settled by Bitcoin at an exchange rate of $32,326.29 to one bitcoin.
500.com. will issue the 11,882,860 shares valued at $12.10, the closing price on Jan. 8, 2021.
Why It Matters: 500.com plans to use the proceeds to buy models S17, T17, M20 and S9 Bitcoin mining machines from a private seller and plans to begin generating revenue from Bitcoin mining within the first half of 2021.
What's Next: The subscription placement is expected to be completed during the first quarter of 2021, after which 500.com plans to install the machines within four weeks.
WBAI Price Action: Shares of 500.com were down 2.08% to $12.72 Thursday afternoon.
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