BIT Mining Announces Sale of Shares of Loto Interactive Limited

Rhea-AI Summary

BIT Mining Limited (NYSE: BTCM) announced the sale of approximately 51% of its shares in Loto Interactive Limited for HK$78,308,496, at HK$0.28 per share. This transaction will reduce BIT Mining's ownership in Loto Interactive to 8.79%. The company aims to focus on the North American market, reallocating resources towards technology and mining innovation. The transaction is subject to regulatory approval and aligns with BIT Mining's strategy to enhance operational efficiency as it expands within the cryptocurrency ecosystem.

Positive

• Shift in focus towards the North American market could lead to improved operational efficiency and growth opportunities.
• Strategic decision to divest shares may allow BIT Mining to allocate resources more effectively.

Negative

• Reduction in ownership stake in Loto Interactive from over 51% to 8.79% may limit influence over Loto's operations.
• Potential risks associated with divesting a major asset could impact investor confidence.

HONG KONG, July 12, 2022 /PRNewswire/ -- BIT Mining Limited (NYSE: BTCM) ("BIT Mining" or the "Company"), a leading technology-driven cryptocurrency mining company, today announced that the Company entered into a share sale and purchase agreement (the "Sale and Purchase Agreement") with an unaffiliated third party (the "Buyer"), pursuant to which the Company agreed to sell, and the Buyer agreed to purchase approximately 51% of the total issued share capital of Loto Interactive Limited ("Loto Interactive"), representing 279,673,200 shares of Loto Interactive at the price of HK$0.28 per share (the "Sale Price") for the total consideration of HK$78,308,496 (the "Transaction"). After the Transaction, the Company's share ownership in Loto Interactive will decrease to 8.79%.

The Transaction is subject to the satisfaction of the conditions set out in the Sale and Purchase Agreement. In addition, the terms of the Transaction may be amended further subject to comments from the applicable regulatory authorities as necessary.

"Following our strategy to focus on developing in the U.S., we believe this is the right decision to sell a majority of our shares of Loto Interactive and devote our resources more extensively to the North American market," commented Mr. Xianfeng Yang, CEO of the Company. "Going forward, with the North American market as our center of excellence, we will continue to invest in technology, innovation, and high-quality mining resources worldwide. At the same time, we will constantly improve operational efficiency as we expand our business to build a strong foundation across the cryptocurrency ecosystem."

About BIT Mining

BIT Mining (NYSE: BTCM) is a leading technology-driven cryptocurrency mining company, with a long-term strategy to create value across the cryptocurrency industry. Its business covers cryptocurrency mining, mining pool, and data center operation. The Company owns the world's top blockchain browser BTC.com and the comprehensive mining pool business operated under BTC.com, providing multi-currency mining services including BTC, ETH and LTC. The Company also owns a 7-nanometer cryptocurrency mining machine manufacturer, Bee Computing, completing the Company's vertical integration with its supply chain, increasing its self-sufficiency and strengthening its competitive position.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," "target," "going forward," "outlook" and similar statements. Such statements are based upon management's current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict and many of which are beyond the Company's control, which may cause the Company's actual results, performance or achievements to differ materially from those in the forward-looking statements. Important factors that could cause BIT Mining's actual results to differ materially from those indicated in the forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the Company's filings with the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required under law.

For further information:

BIT Mining Limited
ir@btcm.group
ir.btcm.group  
www.btcm.group

The Piacente Group, Inc.
Brandi Piacente
Tel: +1 (212) 481-2050
Email: BITMining@thepiacentegroup.com

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SOURCE BIT Mining Limited

FAQ

What is the recent share sale announced by BIT Mining (BTCM)?

BIT Mining announced a sale of approximately 51% of its shares in Loto Interactive Limited for HK$78,308,496.

How much stake does BIT Mining retain in Loto Interactive after the sale?

After the sale, BIT Mining will retain an 8.79% ownership stake in Loto Interactive.

What is BIT Mining's strategy following the share sale?

BIT Mining aims to focus on the North American market for future growth and allocate resources towards technology and mining innovations.

What is the price per share BIT Mining received for the sale of Loto Interactive?

BIT Mining received HK$0.28 per share in the sale of Loto Interactive.

What are the conditions for the completion of the share sale by BIT Mining?

The sale is subject to the satisfaction of the conditions set out in the Sale and Purchase Agreement and regulatory approvals.