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BTCC Looks to Sell 49% of Bitcoin Mining Pool

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BTCC Looks to Sell 49% of Bitcoin Mining Pool

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.

Related Story: Crypto Behind The Great Wall

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:

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.”

Now set to launch an upgraded exchange, BTCC may be looking to lead the charge against the PRC — the global superpower now considering implementing regulation around cryptocurrency.

Cover Photo by Pineapple Supply Co. on Unsplash

Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.

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Author

Jonnie Emsley

Jonnie Emsley is a freelance writer and blockchain enthusiast based in Ho Chi Minh City, Vietnam. Discovering new corners of Southeast Asia and emerging cryptocurrencies give him a buzz like none other.

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