Former Chinese ‘big tree’ crypto exchange BTCC has decided to sell 49 percent of its mining pool, BTCC Pool Limited, in equity in a non-legally binding agreement.
In a release issued on the Hong Kong Stock Exchange, potential buyer Value Convergence Holdings Limited stated details of its move to buy 4,900 shares for a 49 percent equity stake in BTCC Pool.
Presently, the deal is a non-legally binding memorandum of understanding that, if it turns out successful, it will see Value Convergence (VC) generate HK$147,000,000 ($18.73 million) to finalize the proposed acquisition.
A relevant detail from the MoU discloses a clause wherein the audited net profit of BTCC Pool, following taxation for the financial year ending in June 2019, should go through a distinct minimum of HK$30,000,000 ($3.82).
With the help of its subsidiaries, VC runs a securities brokerage and other businesses in corporate finance in regions such as Greater China. The publicly-listed company plans to mark its entry into the cryptocurrency sector by buying the 49% equity stake in the bitcoin mining pool through Initial Honor Limited, its totally owned subsidiary.
Data in the past four-day period from Blockchain.info indicates BTCC Pool sums up to 1.1 percent of bitcoin’s hashrate, now dominated by mining pools owned by Chinese crypto mining giant Bitmain.
BTC China-turned BTCC, the world’s oldest bitcoin exchange, was ordered to stop its operations in China after sweeping curbs in 2017 successfully disrupted the initial coin offering (ICO) and cryptocurrency sector domestically.