Bit Mining, a company in the cryptocurrency industry, has announced plans to eliminate its lottery business and dispose of its lottery subsidiaries. The lottery business previously contributed 13.6% of the company’s total revenue, but resulted in a net loss of RMB9.8m for the three months ending in March 2021. The VIE subsidiaries holding the lottery assets represented 6.3% of the company’s total assets, with RMB161.6m in net debt.
Bit Mining’s decision to exit the lottery industry is due to its focus on expanding its cryptocurrency mining business globally. The company expects the disposal to have no significant impact on its financial position or operational results. Bit Mining has been able to achieve positive financial results since December 2020 by shifting its focus to cryptocurrency mining and implementing an overseas development strategy.
Xianfeng Yang, the company’s CEO, is overseeing the transition from lotteries to cryptocurrencies and blockchain technologies. In February 2021, Bit Mining further expanded its involvement in the cryptocurrency industry by acquiring Blockchain Alliance Technologies, the owner of BTC.com. BTC.com offers services such as cryptocurrency mining pools, cryptocurrency wallets, and information about cryptocurrencies.
