HONGKONG, China, July 23, 2021 /PRNewswire/— BIT Mining Limited
(NYSE: BTCM) ("BIT Mining" or "the Company"), a leading
cryptocurrency mining enterprise, today announced its decision to
eliminate its variable interest entity ("VIE") structure and to
dispose of its Chinese lottery related business for nil
consideration. BIT Mining's consolidated affiliated subsidiaries
under the VIE structure (the "VIE subsidiaries"), were primarily
engaged in the Company's Chinese lottery related business, which
contributed RMB2.7 million
(US$0.4 million), or 13.6%, of the
Company's total revenue and net loss of RMB9.8 million (US$1.5
million) for the three months ended March 31, 2021. As of March 31, 2021, total assets held by the VIE
subsidiaries represented RMB82.8
million (US$12.6 million), or
6.3%, of the Company's total assets and net debt held by the VIE
subsidiaries was RMB161.6 million
(US$24.6 million).
The VIE subsidiaries will be deconsolidated and their financial
results will no longer be included in the Company's consolidated
financial statements as a result of eliminating the VIE structure.
Due to the expansion of the Company's cryptocurrency mining
business outside of China, the
Company does not expect the removal of the VIE structure to have a
material impact on its operational results or financial
position.
Since December 2020, the Company
has pivoted its business to cryptocurrency mining and has achieved
positive financial results by adopting an overseas development
strategy. In consideration of the continued losses sustained
by its Chinese lottery related business operations, the Company has
decided to exit and dispose of this immaterial business. With the
elimination of the VIE structure, BIT Mining has exited its Chinese
lottery related business and will focus on the overseas crypto
mining business.
About BIT Mining
BIT Mining (NYSE: BTCM) is a leading 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 has deployed
Bitcoin mining machines with a theoretical maximum total hash rate
capacity of approximately 1,031.5 PH/s and owns the entire mining
pool business operated under BTC.com, including the domain name
BTC.com. The Company has also entered into a definitive agreement
to acquire a 7-nanometer cryptocurrency mining machine
manufacturer, Bee Computing, to complete its vertical integration
with its supply chain, increase its self-sufficiency and strengthen
its competitive position.
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:
BIT Mining Limited
ir@btc.com
Ir.btc.com (The Investor Relations website has moved to
http://ir.btc.com.)
Ms. Danni Zheng
Phone: +86 755 8633 8005
The Piacente Group, Inc.
Helen Wu
Tel: +86 (10) 6508-0677
Email: BITMining@thepiacentegroup.com
In the United States:
The Piacente Group, Inc.
Brandi Piacente
Tel: +1 (212) 481-2050
Email: BITMining@thepiacentegroup.com
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SOURCE BIT Mining Limited