In a non-binding agreement, BTCC Pool Limited — the mining operation of former Chinese exchange BTCChina — agreed to sell a 49% stake of its Bitcoin mining pool.
With 4.55% of all Bitcoin blocks in the last year, BTCC’s operation is effectively the 7th most successful BTC mining pool in the world.
The buyer in question is to Value Convergence (VC) Holdings Limited, a Hong Kong-based financial services company which through its subsidiaries, operates commodities trading, securities brokerage, and finance businesses throughout China.
In a Memorandum of Understanding (MOU) published June 24th, 2018 by the Hong Kong Stock Exchange, both parties tentatively agreed to the sale — which would see 4900 shares (or 49%) change hands for HK$147,000 ($18.7 million).
As a “Proposed Acquisition”, the MOU does not bind either party to fulfil the deal, and may see further negotiation between the two parties take place. While MOUs are not legally enforceable documents, they typically expedite the process of moving towards a formal agreement.
BTCC: Return to China?
BTCC appears to be eyeing a return to its roots. Ousted from China in 2017’s nation-wide crackdown on ICOs and exchanges, the company was bought out by a Hong Kong blockchain investment fund — the January 2018 began to “aggressively” grow BTCC’s pool operation. BTCC Co-Founder and CEO Bobby Lee announced:
We’re excited to announce that BTCC has been acquired by a blockchain investment fund. The acquisition allows us to aggressively grow our pool (https://t.co/Lw6nIza0Bu ), wallet (https://t.co/60l2aJ0sbd ) and exchange (https://t.co/NOskquCl6i ) businesses: https://t.co/VQpyX4BsrT pic.twitter.com/mPJ57742JR
— BTCC (@YourBTCC) January 29, 2018
Now courting VC Holdings in the potential sale, BTCC seems to be taken by the financial services company’s healthy Chinese presence. In detailing “Reasons for the Proposed Acquisition”, the memorandum hints at BTCC’s intention to resecure its footing in the PRC:
“As disclosed in the Company’s 2017 annual report, the Group’s strategy is to strengthen the existing core business and tap into new emerging markets with expanded business initiatives and explore business opportunities in the PRC. The Proposed Acquisition represents an excellent opportunity for the Group to be exposed to the fin-tech area by leveraging the expertise of the Target Group’s management team.”
Cover Photo by Pineapple Supply Co. on Unsplash
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