500.com Limited Completes Acquisition of Bitcoin Mining Machines with Total Hash Rate Capacity of Approximately 918.5 PH/s

Rhea-AI Summary

500.com Limited (NYSE: WBAI) has finalized the acquisition of bitcoin mining machines from non-U.S. individuals, issuing 11,882,860 new Class A ordinary shares at US$1.21 each, totaling US$12.10 per American Depositary Share based on the January 8, 2021 closing price. The acquired machines, including models S17, T17, M20s, and S9, are expected to enhance the company’s total hash rate capacity to approximately 1000 PH/s upon full deployment. This move aligns with 500.com’s strategy to expand within the cryptocurrency mining sector.

Positive

• Acquisition of bitcoin mining machines enhances operational capacity.
• Expected total hash rate capacity of approximately 1000 PH/s post-deployment.
• Strategic move to solidify 500.com's position in the cryptocurrency mining industry.

Negative

• None.

SHENZHEN, China, March 15, 2021 /PRNewswire/ -- 500.com Limited (NYSE: WBAI) ("500.com" or the "Company"), a cryptocurrency mining enterprise in China, today announced that it has completed its acquisition of bitcoin mining machines owned by certain non-U.S. persons in exchange for an aggregate of 11,882,860 newly-issued Class A ordinary shares valued at US$1.21 per share, corresponding to US$12.10 per American Depositary Share ("ADS") (based on the ratio of ten ordinary shares per ADS), the closing trading price of the Company's ADSs on January 8, 2021. This transaction was previously announced on January 11, 2021.

The bitcoin mining machines acquired in this transaction (the "Bitcoin Mining Machines") include such models as the S17, T17, M20s and S9. The theoretical maximum total hash rate capacity of the  Bitcoin Mining Machines is estimated to be approximately 918.5 PH/s. Once fully deployed, the Company estimates that all of its bitcoin mining machines, including the Bitcoin Mining Machines, will have a total hash rate capacity of up to approximately 1000 PH/s in aggregate.

About 500.com Limited

500.com Limited (NYSE: WBAI) is committed to becoming a leading cryptocurrency mining enterprise. Since announcing its entry into the cryptocurrency industry in December 2020, the Company has entered into definitive agreements to (i) purchase cryptocurrency mining machines, (ii) acquire a controlling stake in Loto Interactive Limited (HKEX: 08198), and (iii) acquire the entire mining pool business of Bitdeer Technologies Holding Company ("BitDeer") operated under BTC.com, including the domain name BTC.com and the cryptocurrency wallet of BTC.com (collectively, the "BTC.com Pool Businesses"), to unfurl a comprehensive approach to cryptocurrency mining. 500.com Limited also was the first company in China to provide online lottery sales agent services, and was one of two enterprises approved by China's Ministry of Finance to engage in the online sports lottery sales agent business on a trial basis.

Safe Harbor 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. 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:

500.com Limited
ir@500wan.com

Ms. Danni Zheng
Phone: +86 755 8633 8005

The Piacente Group, Inc.
Helen Wu
Tel: +86 (10) 6508-0677
Email: 500@tpg-ir.com

In the United States:

The Piacente Group, Inc.
Brandi Piacente
Tel: +1 (212) 481-2050
Email: 500@tpg-ir.com

View original content:http://www.prnewswire.com/news-releases/500-com-limited-completes-acquisition-of-bitcoin-mining-machines-with-total-hash-rate-capacity-of-approximately-918-5-phs-301247293.html

SOURCE 500.com Limited

FAQ

What is the significance of 500.com Limited's acquisition of bitcoin mining machines?

The acquisition enhances 500.com Limited's mining capacity and positions the company for growth in the cryptocurrency sector.

How many shares did 500.com issue for the bitcoin mining machines acquisition?

500.com issued 11,882,860 newly-issued Class A ordinary shares for the acquisition.

What is the estimated total hash rate capacity of the newly acquired bitcoin mining machines?

The estimated total hash rate capacity of the acquired machines is approximately 918.5 PH/s, with a projected capacity of up to 1000 PH/s including all machines.

When was the acquisition of bitcoin mining machines announced by 500.com?

The acquisition was previously announced on January 11, 2021.

What is the value of the shares issued by 500.com for the acquisition?

The shares were valued at US$1.21 per share, corresponding to US$12.10 per American Depositary Share.