• In China, BIT Mining Ltd is selling its lottery business

  • BIT Mining Limited was a company that offered online gambling services. Through its platform, the company used to offer internet lotteries all over the world. The leading crypto business is listed on the New York Stock Exchange (NYSE). BIT was once known as the 500 Lottery, according to a Chinese local media site. The company just announced that it will sell its lottery operation in China. Notably, the company intends to concentrate on digital asset mining operations. As a result, the crypto platform will give away its Viable Interest Enterprise (VIE) structure for free.

    Value of a Profitable Interest Business

    Following the gains in the mining business, BIT Mining Ltd appears to be interested. The company makes 13.6 percent of its income by operating a lottery. The profit was estimated to be around $0.4 million, but it suffered a net loss of $9.8 million in just 90 days in the first quarter of this year.

    The total value of assets controlled by the firm’s VIE subsidiary was estimated to be $12.6 million at the start of this fiscal year. Notably, the assets made up around 6.3 percent of BIT Mining Ltd’s total assets.

    The company’s overall net debt, on the other hand, has been evaluated at $24.6 million.

    The financial performance of VIE will be excluded from BIT Mining.

    The lottery business operating subsidiary of BIT Mining Ltd is being sold. The subsidiary will be given away for free. As the company dissolves, its financial statements, including the one for BIT Mining Lts, will be hidden. Notably, the component clarifies that the sale will have no impact on the company’s operations.

    The planned expansion of BIT’s global footprint

    By the end of last year, BIT Mining had turned to cryptocurrency mining. The company has had a successful financial outcome since the change. Indeed, it now intends to expand its cryptocurrency mining operations beyond China. As a result, it will expand its activities to other countries.

    Why has the company turned its focus to cryptocurrency mining?

    One of the main reasons for BIT Mining’s decision to relocate its activities is the aforementioned losses. Furthermore, the lottery sector has resulted in numerous losses for the company. However, in terms of expansion, it is well known that the recent Chinese crackdown on crypto businesses is the major factor causing the company to reallocate its resources. Similarly, many other Chinese miners are relocating their businesses to crypto-friendly countries such as Canada, Kazakhstan, and the United States.

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