Bit Mining dismantled the VIE structure and divested the lottery business at the same time

On July 23, Bit Mining ($Bit Mining (BTCM) $) issued an announcement announcing the dismantling of its variable interest entity (hereinafter referred to as "VIE") structure and the disposal of its lottery-related business in China, which has been in a loss state for a long time, which is intended to reduce the burden and better focus on the main business.

The merged subsidiary of Bit Mining VIE (hereinafter referred to as "variable interest entity subsidiary") is mainly engaged in lottery information related business. In the first quarter of 2021, the business achieved revenue of 2.7 million yuan (about 400,000 US dollars) and net loss of 9.8 million yuan (about 1.5 million US dollars).

The subsidiary of variable interest entity has been in a state of continuous loss since 2015, and it is the main source of loss of bit mining. As of March 31, 2021, the total assets of subsidiaries of variable interest entities were 82.8 million yuan (about 12.6 million US dollars), accounting for 6.3% of the company's total assets; The net debt of VIE subsidiaries is 161.6 million yuan (about 24.6 million US dollars).

Bit Mining said that after the VIE structure is dismantled, the financial data of subsidiaries of variable interest entities will no longer be included in the financial statements of listed companies, which will have a positive impact on optimizing the financial structure of listed companies. In addition, with the removal of VIE architecture, the company's operation will no longer involve China lottery related business, and will focus on overseas cryptocurrency mining business.

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Modify on 2021-07-24 10:26

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