500.com Limited Entered into Two Agreements to Acquire Bitcoin Mining Machines

Rhea-AI Summary

500.com Limited (NYSE: WBAI) announced a definitive purchase agreement to acquire 5,900 bitcoin mining machines for approximately RMB55.2 million (about US$8.5 million). Delivery is expected in Q2 2021. Concurrently, a framework agreement has been established to potentially purchase an additional 10,000 machines within the year, contingent on availability. A performance bond of RMB10 million (around US$1.5 million) will be paid for initial deliveries. The total acquisition aims to boost the company's hash rate by approximately 1,000 petahashes per second.

Positive

• Acquisition of 5,900 bitcoin mining machines enhances operational capability.
• Projected increase in hash rate by approximately 1,000 PH/S from the new machines.
• Framework agreement allows for potential expansion with an additional 10,000 machines.

Negative

• None.

SHENZHEN, China, Feb. 2, 2021 /PRNewswire/ -- 500.com Limited (NYSE: WBAI) ("500.com" or the "Company"), today announced that it has entered into a definitive purchase agreement (the "Purchase Agreement") for 5,900 bitcoin mining machines for a total consideration of approximately RMB55.2 million (approximately US$8.5 million). All of the bitcoin mining machines are expected to be delivered in the second quarter of 2021.

Concurrently with the Purchase Agreement, the Company today announced that it has entered into a framework agreement (the "Framework Agreement"), pursuant to which the Company has agreed in principle to purchase up to 10,000 bitcoin mining machines in 2021, subject to availability and certain other conditions. The Company is required to pay a performance bond of RMB2,000 per machine for the first 5,000 machines, or RMB10 million (approximately US$1.5 million) in aggregate.

Assuming full delivery of the 15,900 bitcoin mining machines, the Company's total hash rate will be increased by approximately 1,000 petahashes per second (PH/S).

About 500.com Limited

500.com Limited (NYSE: WBAI) is an online sports lottery service provider in China. The Company offers a comprehensive and integrated suite of online lottery services, information, user tools and virtual community venues to its users. Most recently, 500.com is actively developing its blockchain-related business.

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 more information, please contact:

500.com Limited
ir@500wan.com

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SOURCE 500.com Limited

FAQ

What is the significance of 500.com Limited's recent purchase agreement for bitcoin mining machines?

The purchase of 5,900 bitcoin mining machines is expected to enhance 500.com Limited's operational capacity, increasing its hash rate significantly.

How much is 500.com Limited spending on bitcoin mining equipment?

500.com Limited agreed to pay approximately RMB55.2 million (around US$8.5 million) for the initial purchase of 5,900 mining machines.

What is the expected impact on 500.com Limited's hash rate?

The total acquisition of mining machines is projected to increase the company's hash rate by about 1,000 petahashes per second.

When will the bitcoin mining machines be delivered?

The delivery of the first batch of bitcoin mining machines is expected in the second quarter of 2021.

Is there a framework agreement in place for further bitcoin mining machines?

Yes, a framework agreement allows for the potential purchase of up to 10,000 additional bitcoin mining machines throughout 2021, subject to conditions.