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- BIT Mining Limited is shifting from lottery business to focus on crypto mining
- BIT will sell its VIE subsidiary for nil consideration
- As VIE dissolves, its financial statement will get separated from the mining firm’s statement
- Heavy losses are one of the key reasons that forced the firms to shift their focus
- The mining firm is planning to expands its operations abroad after seeing impressive gains and a Chinese crackdown on crypto firms
BIT Mining Limited was an online gambling services provider. The firm used to offer internet lotteries through its platform globally. The top line crypto firm trades on New York Securities Exchange (NYSE). According to a Chinese local media outlet, BIT was formerly known as the 500 Lottery. Recently the firm has revealed that it will sell its lottery business in China. Notably, the firm is planning to focus on digital assets mining operations. Hence, the crypto platform will sell its Viable Interest Enterprise (VIE) structure for nil consideration.
Worth of Viable Interest Enterprise
BIT Mining Ltd seems to be attracted following the gains in the mining industry. Operating a lottery business, the firm is getting 13.6%of its revenue. It is known that the profit figure was about $0.4 million, whereas it faced a net loss of $9.8 million in just 90 days that ended in the first quarter of this year.
At the beginning of this financial year, the total amount of assets owned by the firm’s VIE subsidiary was calculated at worth $12.6 million. Notably, the assets were about 6.3% of the assets of BIT Mining Ltd.
On the other hand, the net debt held by the company has been calculated at $24.6 million in total.
VIE financial results will not be included in BIT Mining
BIT Mining Ltd has planned to sell its lottery business operating subsidiary. The subsidiary will be sold for nil consideration. As the firm dissolves, its financial statement will not be shown, including with the BIT Mining Lts’s one. Notably, the factor clarifies that the sell-off will not impact the operations of the company.
BIT’s plans to expand its global footprint
BIT Mining switched to cryptocurrency mining by late last year. Since the shift, the firm has achieved a satisfactory financial outcome. Indeed, it is now planning to expand its crypto mining operations outside China. Hence, it will expand its operations in overseas locations.
Why has the firm shifted to crypto mining?
The aforementioned losses are one of the more significant reasons why BIT Mining is shifting its operations. In addition, the lottery business has shown many losses to the firm. However, in terms of expansion, it is known that recent China’s outbreak on crypto firms is the significant one that is forcing the firm to allocate its business. Likewise, many other Chinese miners are allocating operations to crypto-friendly countries like Canada, Kazakhstan, and the United States of America.
