Bit Mining Limited has announced the sale of Btc.com’s mining pool operations for $5 million to a Hong Kong limited liability company called Esport-Win Limited. The sale is expected to benefit Bit Mining’s shareholders by strengthening their total equity, subject to certain conditions being met.
Bit Mining, which is listed on the NYSE and specializes in mining and blockchain infrastructure, shared that while the Btc.com pool generated an annual revenue of $593.2 million, it experienced a net operating loss of $2.6 million for the year. The company hopes that by divesting the mining pool business, it will improve profitability and cash reserves.
Previously known as 500.com Ltd and focused on sports lottery, Bit Mining shifted its focus to bitcoin mining in 2021 when it acquired Btc.com from Bitmain. The company’s CEO, Xianfeng Yang, is optimistic that this divestiture will strengthen the company’s existing operations. Yang also mentioned that the proceeds from the sale and the company’s improved profitability will provide opportunities for future expansion and exploration of new areas.
At the time of its acquisition, Btc.com’s mining pool held a significant market share, commanding over 10% of the total bitcoin hashrate and ranking among the top five globally. However, as of December 30, 2023, its hashrate share has dropped to 1%, making it the 15th largest mining pool in the network. It’s important to note that Bit Mining has only sold the mining pool venture and not the btc.com domain or blockchain explorer services.
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