Chinese cryptocurrency mining company Bit Mining has announced its decision to close down its Chinese lottery related business.
The firm said it has eliminated its variable interest entity structure, the series of holding companies that owned the lottery company, shutting the lottery business for ‘nil consideration’.
The lottery business was previously Bit Mining’s primary operation when it was known as 500.com. However, the foray into cryptocurrency mining has rendered the company redundant.
In the quarter leading up to March 31, the lottery business contributed RMB2.7m ($417,687), 13.6% of the company’s total revenue. At this time, the business and the various VIE subsidiaries totalled just 6.3% of the firm’s total assets, whilst it also carried a net debt of RMB161.6m ($24.6m).
As a result, Bit Mining said the lottery business will no longer be counted for in its future financial results.
The firm does not expect the closure of the VIE structure to impact its operational results or financial performance due to “the expansion of the company’s cryptocurrency mining business outside of China”.
In a statement, Bit Mining said: “Since December 2020, the Company has pivoted its business to cryptocurrency mining and has achieved positive financial results by adopting an overseas development strategy.
“In consideration of the continued losses sustained by its Chinese lottery related business operations, the Company has decided to exit and dispose of this immaterial business.”