500.com To Purchase Bitcoin Mining Machines

500.com Ltd. - ADR (NYSE: WBAI) is an online gambling services company based in Shenzen, China. It provides online lottery services and information tools on behalf of China Sports Lottery Adminstration Center.

What Happened: 500.com filed form 6-K with the United States Securities and Exchange Commission on Thursday.

In connection with the Good Luck Information Technology Co. Ltd., 50% of the subscription will be settled in U.S. dollars and 50% will be settled by Bitcoin at an exchange rate of $32,326.29 to one bitcoin.

500.com. will issue the 11,882,860 shares valued at $12.10, the closing price on Jan. 8, 2021.

Why It Matters: 500.com plans to use the proceeds to buy models S17, T17, M20 and S9 Bitcoin mining machines from a private seller and plans to begin generating revenue from Bitcoin mining within the first half of 2021.

What's Next: The subscription placement is expected to be completed during the first quarter of 2021, after which 500.com plans to install the machines within four weeks.

WBAI Price Action: Shares of 500.com were down 2.08% to $12.72 Thursday afternoon.