Crypto major Bit Mining announces divestiture of Btc.com’s Mining Pool to a Hong Kong Company for $5 Million
Bit Mining announced its recent divestment of Btc.com’s mining pool operations for $5 million. In a transaction expected to improve the total equity of Bit Mining’s shareholders, Btc.com’s mining operations were sold to a Limited liability Hong Kong-based company, given some concluding conditions are met.
Bit Mining Sells Btc.com’s Mining Pool for a hefty sum
Bit Mining, traded as BTCM on NYSE recently declared the sale of its mining pool related to Btc.com for a whopping $5 million. The purchase was made by an esports firm from Hong Kong, Esport-Win Limited. Despite the mining pool garnering a revenue of $593.2 million annually, the financial reports showed a net operating loss of $2.6 million for the entire year.
BTCM is hopeful that this divestiture will provide them with an improved profitability and a stronger cash flow. The company was originally operating as a sports lottery firm 500.com Ltd, and turned its attention to bitcoin mining in 2021, during which it purchased Btc.com from Bitmain. BTCM’s frontrunner, Xianfeng Yang is rooting for the dispossession to augment the existing operations of the firm.
Yang asserts that the sale of the loss-contributing mining pool business is expected to enhance their resilience, while focusing their resources on the existing business’s R&D. He further added, “The cash inflow from the transaction and our company’s enhanced profitability outlook will further strengthen our position to explore new areas with greater potential and room for future expansion.”
At the time of its initial acquisition, Btc.com’s pool was a predominant force in the bitcoin mining industry, controlling over 10% of the total hashrate and ranking among the top five, globally. However, as of December 30th, 2023, its hashrate has plunged to a meager 1%, positioning it at 15th in the leading mining pools. While BTCM has sold the Btc.com pool venture, it did not part ways with the internet domain btc.com or the blockchain explorer services.
How Quamas app can play a role in cryptocurrency mining operations
The quamas app can be a formidable tool for individuals who find themselves caught up in the volatile world of cryptocurrency. By facilitating real-time updates and tracking of cryptocurrency, users can make informed decisions and avoid considerable losses. In light of Bit Mining’s sale of Btc.com’s mining pool, this functionality could be beneficial when it comes to keeping an eye on your mining operations, in turn, offering you the kind of insights needed to make strategic decisions in a highly competitive environment.
Frequently asked Questions
1. What is BTC.com’s mining operations?
BTC.com’s mining operations refer to the process of obtaining new Bitcoins by solving complex mathematical problems using powerful computer hardware. BTC.com is a prominent player in the cryptocurrency mining industry.
2. Why did BTC.com decide to trade its mining operations?
BTC.com made the decision to trade its mining operations to focus on other areas of the cryptocurrency market. This strategic move allows the company to reallocate resources and capital towards projects that align better with its long-term goals.
3. How much did BTC.com receive in exchange for its mining operations?
BTC.com received a substantial amount of $5 million in exchange for its mining operations. This monetary transaction reflects the value and potential of the mining operations to the buyer.
4. Who acquired BTC.com’s mining operations?
The specific buyer of BTC.com’s mining operations has not been disclosed. However, it is likely that the buyer is a company or investor interested in expanding their presence in the cryptocurrency mining industry.
5. What impact will this trade have on BTC.com’s overall business?
The trade of mining operations for $5 million will enable BTC.com to streamline its operations and focus on other aspects of the cryptocurrency market. This move allows the company to adapt to the evolving landscape and pursue new opportunities for growth.
6. Will BTC.com continue to be involved in the mining industry?
While BTC.com has traded its mining operations, it doesn’t necessarily mean the company is completely exiting the mining industry. BTC.com may still maintain an interest in mining through partnerships, investments, or other means.
7. What are the future plans for BTC.com after trading its mining operations?
After trading its mining operations, BTC.com intends to explore and invest in other areas of the cryptocurrency market. This could involve developing new products or services, expanding into different sectors, or even exploring emerging technologies within the blockchain space.