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US-Listed BIT Mining Focuses on Bitcoin Mining, Sells Its Lottery Business in China

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Sat, 07/24/2021 - 16:00
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Yuri Molchan
BIT Mining company is selling its former lottery business in China to focus on cryptocurrency mining only
US-Listed BIT Mining Focuses on Bitcoin Mining, Sells Its Lottery Business in China
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BIT Mining Limited that trades on NYSE as BTCM is a top line crypto mining company has spread the word about getting out of its lottery business in China.

It will sell its viable interest enterprise (VIE) structure for nil consideration and focus on crypto mining.

Pulling focus on crypto mining

BIT Mining (formerly known as 500 Lottery, according to the Chinese crypto journalist ColinWu) had earned 13.6 percent of its revenue from the lottery-related business – that’s $0.4 million (2.7 million yuan) and net loss of $1.5 million (9.8 million yuan) for the ninety days that ended in late March.

As of March 31, the total amount of assets owned by the company’s VIE network was $12.6 million (82.8 million yuan) – 6.3 percent of the BIT Mining total assets.

The net debt held by the VIE subsidiaries, however, totalled $24.6 million (161.6 million yuan).

After the VIE subsidiaries are deconsolidated, their financial results will not be included the BIT Mining’s financial statements and will not impact them.

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BIT Mining expands crypto mining business beyond China

The company switched to crypto mining in December 2020 and since then it has achieved a satisfactory financial outcome, mining digital currencies outside China.

One of the reasons for that were the aforementioned losses from its lottery-related business. Now, the company will be expanding its cryptocurrency mining operations in overseas locations.

Recently, the Chinese government has imposed a ban on crypto mining companies, forcing miners to switch off their rigs by cutting access to electricity for them, even in the local power hubs with cheap hydro power.

Many Chinese mining companies, including Bitmain, have begun relocating abroad – to friendlier countries, such as Canada, Kazakhstan and the USA.

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About the author

Yuri is a crypto journalist interested in technology and technical innovations. He has been in crypto since 2017. Believes that blockchain and cryptocurrencies have a potential to transform the world in the future in many of its aspects. ‘Hodls’ major cryptocurrencies and has written for multiple crypto media outlets. 

His articles have been quoted by such crypto influencers as Tyler Winklevoss, John McAfee, CZ Binance, Max Keiser, etc.

Currently Yuri is a news writer at U.Today and can be contacted at yuri.molchan@u.today.