NYSE-listed Chinese sports lottery outfit 500.com, which announced it was moving into the cryptocurrency space in January, is buying thousands of bitcoin mining machines.
500.com said Tuesday it has signed a deal to purchase 5,900 units for 55.2 million yuan ($8.5 million), Coinbase reports.
Under a wider a framework agreement, the firm, which offers a comprehensive and integrated suite of online lottery services, information, user tools and virtual community venues to its users, has agreed in principle to buy up to 10,000 bitcoin mining machines in 2021.
Under the deal, 500.com is required to pay a performance bond of 2,000 yuan ($309) per machine for the first 5,000 machines, or 10 million yuan (roughly $1.5 million) in total.
If all 15,900 bitcoin mining machines are delivered, the firm’s total hash rate is expected to increase by 1,000 petahashes per second.