500.com Bets on Bitcoin: Online Lottery Company Shifts Focus to Blockchain and Digital Currency
The online sports lottery company based in China, 500.com, experienced a revenue boost of 5% in the final quarter of 2020 compared to the same period the previous year, hitting 9 million yuan (equivalent to $1.4 million). This represents a substantial 48% jump from the 6.1 million yuan earned in the third quarter.
However, the total revenue generated by the company for the year concluding on December 31, 2020, decreased to 21.8 million yuan from 39.7 million yuan in 2019. The company cites the ongoing global health crisis and its effects on the athletic sector as the primary cause for this downturn.
Intriguingly, 500.com is pivoting its attention towards distributed ledger technology and digital currencies. The company has entered into a contract to acquire 5,900 Bitcoin mining rigs for an estimated 55.2 million yuan (approximately $8.5 million). This calculated maneuver aligns with the company’s investment in Lotto Interactive, an organization with a significant footprint in Bitcoin mining. 500.com intends to expand its ownership in Lotto Interactive, which is projected to transition into a subsidiary.
This strategic realignment implies that 500.com recognizes substantial promise in the digital currency market and seeks to broaden its holdings beyond online lottery activities.
