BIT Mining announces the abolition of the VIE structure and the sale of the Chinese lottery business

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HONG KONG, China, July 23, 2021 / PRNewswire / – BIT Mining Limited (NYSE: BTCM) (“BIT Mining” or “the Company”), a leading cryptocurrency mining company, today announced its decision to eliminate its structure from variable interest entity (“VIE”) and sell its Chinese lottery-related activities for nil consideration. BIT Mining’s consolidated affiliates under the VIE structure (the “VIE Subsidiaries”), were primarily engaged in the Company’s Chinese lottery-related activities, which contributed 2.7 million RMB (US $ 0.4 million), or 13.6%, of the Company’s total sales and the net loss of 9.8 million RMB (1.5 million US dollars) for the three months ended March 31, 2021. From March 31, 2021, total assets held by the VIE subsidiaries represented 82.8 million RMB ($ 12.6 million), i.e. 6.3%, of the total assets and net debt of the Company held by the subsidiaries of VIEs 161.6 million RMB (US $ 24.6 million).

The subsidiaries of VIEs will be deconsolidated and their financial results will no longer be included in the consolidated financial statements of the Company due to the elimination of the structure of VIEs. Due to the expansion of the Company’s cryptocurrency mining business outside of China, the Company does not expect the removal of the VIE structure to have a material impact on its results of operations or financial condition.

Since december 2020, the Company has oriented its activities towards cryptocurrency mining and has achieved positive financial results by adopting an overseas development strategy. In view of the continued losses suffered by its business activities related to Chinese lotteries, the Company has decided to withdraw and sell this insignificant activity. With the elimination of the VIE structure, BIT Mining has abandoned its Chinese lottery-related activities and will focus on crypto mining activities abroad.

About BIT Mining

BIT Mining (NYSE: BTCM) is one of the leading cryptocurrency mining companies, with a long-term strategy to create value in the cryptocurrency industry. Its activities cover cryptocurrency mining, pool mining and data center operations. The Company has deployed Bitcoin mining machines with a theoretical maximum total hash rate capacity of approximately 1,031.5 PH / s and owns all of the mining pool business operated under BTC.com, including the name domain BTC.com. The Company has also entered into a definitive agreement to acquire a manufacturer of 7 nanometer cryptocurrency mining machines, Bee Computing, in order to complete its vertical integration with its supply chain, increase its autonomy. and strengthen its competitive position.

Safe Harbor declarations

This press release contains forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements may be identified by terminology such as “will”, “expects”, “anticipates”, “the future”, “intends”, “plans”, “believes”, “estimates”, “the goal” , “In the future”, “the outlook” and similar statements. These statements are based on management’s current expectations and current market and operating conditions and relate to events that involve known or unknown risks, uncertainties and other factors, all of which are difficult to predict. and many of which are beyond the control of the Company, which may cause the actual results, performance or achievements of the Company to differ materially from those indicated in forward-looking statements. Further information regarding these and other risks, uncertainties or factors is included in the documents filed by the Company with the United States Securities and Exchange Commission. The Company assumes no obligation to update any forward-looking statement as a result of new information, future events or otherwise, except as required by law.

For more information:

BIT Mines Limited
[email protected]
Ir.btc.com (The Investor Relations website has been moved to http://ir.btc.com.)
M / s. Danni zheng
Telephone: +86 755 8633 8005

The Piacente Group, Inc.
Helene wu
Phone. : +86 (10) 6508-0677
E-mail: [email protected]

In United States:
The Piacente Group, Inc.
Brandi Piacente
Phone. : +1 (212) 481-2050
E-mail: [email protected]

SOURCE BIT Mining Limited


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