Home Bitcoin News Bitcoin Mining Chinese Lottery Firm Furthers Crypto Pivot by Buying Bitcoin Miner Maker for $100M – CoinDesk – CoinDesk

Chinese Lottery Firm Furthers Crypto Pivot by Buying Bitcoin Miner Maker for $100M – CoinDesk – CoinDesk

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Chinese language on-line lottery firm 500.com (NYSE: WBAI) has acquired Bee Computing, a Hong Kong-registered maker of Bitcoin mining machines, for $100 million, in accordance with an filing Monday with the U.S. Securities and Alternate Fee. 

500.com, which changed its title to BIT Mining Restricted in March, has been quietly shifting its focus from its struggling on-line lottery enterprise to bitcoin mining during the last 4 years. The corporate accelerated that transition late final 12 months amid bitcoin’s historic bull run, making it one in all many publicly traded firms making an attempt to revenue for bitcoin’s rising worth. 

It’s now one of many few large-scale firms within the crypto-mining enterprise after buying the third-largest mining pool, BTC.com, and three mining farms below its Loto Interactive unit. The corporate is venturing into the enterprise of constructing mining machines with the most recent deal, which comes at a time when mining firms are in brief provide of these machines.

BIT Mining stated Bee Computing has labored with MTK, which is the biggest chip designer in Asia, to make a seven-nanometer chip for bitcoin mining. Taiwan Semiconductor Manufacturing Co. (TSMC) will provide the chips, in accordance with Yufei Jiang, CEO of Bee Computing. 

Jiang stated Bee Computing has acquired backing from a number of the most influential firms within the semiconductor business. MTK invested $9.5 million in a Collection B spherical, and Taiwan-based ASE Group, which is the main semiconductor meeting and check firm, invested $3 million in the identical spherical.   

Bee Computing’s present miner mannequin’s efficiency is much like Bitmain’s T17, which tends to have larger vitality consumption than Bitmain’s S17 however is much less highly effective than Bitmain’s newest mannequin S19. 

Jiang stated Bee Computing’s analysis and improvement slowed down through the bear market a number of years in the past however the firm can choose up the tempo with new capital from BIT Mining. 

BIT Mining is ready to take a position $30 million in Bee Computing’s analysis to develop higher 7-nm chips for bitcoin mining and better high quality miners for ether and litecoin. Jiang stated the corporate would be capable of check new chips by October. 

Crypto miners use the application-specific built-in circuit (ASIC), which is an integrated circuit chip, to mine cryptocurrencies similar to bitcoin. The 7-nm determine refers back to the measurement of the transistor. The smaller the part is, the extra you’ll be able to match into a chunk of silicon and the extra highly effective the mining machine turns into, making the chip some of the sought-after parts for any main bitcoin miner maker. 

To place that into context, main crypto mining machine maker Bitmain’s newest mannequin makes use of 7-nm chips. Designing secure and high-performance chips for mining machines may be very pricey and difficult even for some massive gamers within the semiconductor business, in accordance with Jiang. 

Whereas Bitmain is finding out new fashions that use 5-nm chips, it might show to be troublesome to fabricate these as a result of TSMC would make many of the chips for automobile makers or cellphone firms similar to Apple. 

Bee Computing produces a lot much less yearly than Bitmain does, due to the fastened variety of 7-nm chips TSMC allocates to every maker of mining equipement. Within the close to future, Bee Computing plans to supply all the brand new mining machines to BIT Mining till it has a surplus to promote. 

BIT Mining had disclosed that it bought $8.5 million value of mining machines in February from Bee Computing. 

In accordance with the acquisition settlement, BIT Mining can pay Bee Computing $35 million in inventory by the top of the second quarter this 12 months and ship the opposite $65 million value of inventory after the acquired firm manages to supply a sure variety of 7nm ASIC bitcoin mining machines in addition to make larger efficiency bitcoin, ethereum and litecoin mining machines. 

BIT Mining formally announced its strategic shift to bitcoin mining in December. In February, the corporate bought the crypto mining mining pool enterprise, BTC.com, from Bitdeer Applied sciences, which was majority owned by Bitmain’s former chief govt Jihan Wu. It has bought no less than $14 million in mining machines in an all-equity deal

Mixed with the prevailing mining pool providers supplied by BIT Mining’s subsidiary Loto Interactive, the corporate can be one of many largest mining swimming pools on this planet, in accordance with knowledge from BTC.com

Loto Interactive has three massive knowledge facilities within the crypto mining hub Sichuan province in central China due to Sichuan’s wealthy hydropower in the summertime. Loto Interactive beforehand solely supplied venues and upkeep providers, fairly than shopping for mining machines and benefiting from mining cryptocurrencies. The corporate has began working its personal miners early this 12 months. 

If an organization solely operates a mining web site for miners to make a revenue, it doesn’t have a lot publicity to crypto’s costs, It will face extra price-related dangers and will stand to revenue extra if it begins to purchase mining machines and run them in its personal mining websites. 

Tsinghua Unigroup is BIT Mining’s holding shareholder, but it surely stays unclear how the Chinese language semiconductor conglomerate is concerned within the firm’s companies.


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