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Before the acquisition of the BTC.com mining pool in the hands of Wu Jihan, the business of 500.com affiliated companies was mainly to construct mines.
Original title: “Decrypting Mysterious 500.com: Is Tsinghua Unigroup or a mining machine behind the estimated 2500 bitcoins this year? 》
Written by: Colin Wu
At present, U.S. stock crypto mining companies are mainly divided into three categories: The first category is the traditional Chinese mining machine manufacturers Canaan and Yibang (transformation of the exchange, mining machine business is reduced), after which there may be Shenma and Bitmain, and the market value of Canaan was once More than 3 billion US dollars; the second category is the two major mining giants in the United States, Mara and Riot, who bought most of the new large-power mining machines this year, with a market value of more than 4 billion US dollars; the third category is installed in mining Business Chinese companies: BTBT, Jiucheng and 500.com.
BTBT was the first to take off, but due to the complex background of the company’s predecessor, it was challenged by a short-selling agency after the sharp rise and fall, and triggered a class action lawsuit; Jiucheng cooperated with the original Canaan Hangzhou team to continue to fill ether in addition to Bitcoin mining machines Fang, GRIN and even Filecoin are very radical and active.
In comparison, 500.com, as a predecessor of Internet lottery company, seems to be relatively low-key and even a little mysterious, but its layout, handwriting and backing capital are larger and more stable. Reference: Analysis: Why does Wu Jihan sell the BTC.com mining pool? Who is Buyer 500.com?
The largest shareholder of 500.com is Tsinghua Unisplendour, which holds approximately 32.59% of the shares, and Sequoia Capital holds 8% (the main external investor of Bitmain is also Sequoia Capital). The chairman of 500.com is also an executive from Tsinghua Unigroup. Ziguang Group is one of the largest chip manufacturing companies in China, and its controlling parties include Zhao Weiguo and Tsinghua University. However, Ziguang Group’s business is not satisfied with the main channel, and it has also caused a lot of criticism. It seems to be all-encompassing from real estate to lottery, and there is a relatively serious debt problem.
Unlike the above-mentioned companies, 500.com’s affiliated companies focused on building mines two years ago, and have started horizontal development this year, including filling in mining machine assets and acquiring the BTC.com mining pool in the hands of Wu Jihan. The chip background of Ziguang Group also makes the outside world speculate on whether it will conduct mining machine research and development in the future.
Regarding 500.com’s business logic, operating status, and reasons for acquiring BTC.com, the relevant person in charge accepted an interview with Wu Shuo Blockchain. The content is organized as follows:
1. What is the business logic of 500.com?
The current business logic of 500 is to start with the mining farm as the entry point, and then inject the computing power of the equipment, which has been paving the way for two years. At present, 500 has a high-quality mine with a load of 435 MW, and is making every effort to purchase a corresponding amount of Bitcoin mining machines. The company expects to achieve 200 MW of electric load occupied by self-owned btc mining machines in May 2022, and its own computing power will exceed 4000P.
At present, the 500 system has its own high-quality hydropower mine of 435 MW. The monthly power consumption in the peak period reaches 300 million kWh/month, and 13-20w mining machines can be placed. Its electricity consumption is equivalent to the daily production electricity used by residents of a medium-developed eastern city with a population of one million. If measured by computing power, the approximate computing power upper limit is 15E (all s19pro is placed), and the daily production of bitcoin can be There are more than 100 pieces. According to statistics on the computing power of the equipment actually operated by the 500 mines in September 2020, based on the calculation power of the entire network at that time 131E, the computing power of the bitcoin equipment carried by the three mining sites of 500 accounted for 6.27% of the total network computing power.
2. What is the revenue status of 500.com?
As currently the largest hydropower mine in China with the most complete qualifications and the highest construction standards, the mine projects under 500 can also create stable business income. Calculated according to the income of 0.05 yuan/degree in the abundant period, it is expected to be realized in 2021 Business profits will exceed RMB 90 million. More importantly, this part of the income is very stable relative to the mining machine mining income, and can form an effective supplement to the Bitcoin mining income.
500.com CEO Yang Xianfeng said that BTC mining machines with 2000P computing power will be gradually deployed at the end of the first quarter of 2021, and a considerable number of ether mining machines will be deployed at the end of the second quarter. According to 500’s recent announcement of equipment purchase orders, 500’s own bitcoin computing power will reach 2000P in 2021. If all of the equipment is in place as scheduled, 500 can obtain more than 2500 bitcoins through equipment calculations within the year. After deducting electricity costs and other costs, it is expected to realize a pre-tax profit of RMB 500-700 million. This income is not included in the profit of the mine project, and the cost of mining equipment is not calculated.
3. Why buy BTC.com?
Three reasons: (1) The mining pool business is an important link in the mining business logic. If 500 can integrate a head mining pool such as BTC.COM into the system, it can make 500’s blockchain business structure more complete. The platform attributes will be further strengthened, which will be more conducive to the improvement of its “closed-loop mining” business concept.
It will further strengthen the business platform attributes of 500.COM, making 500.COM a “closed-loop mining” business platform that integrates benchmark mines, leading mining pools, own computing power, and managed computing power.
(2) BTC.COM itself has good brand benefits and very high-quality customer resources. Once incorporated into the 500 business system, it can cross-integrate marketing with the 500 existing mine business to enhance competitiveness and increase customer retention.
(3) The BTC.COM domain name itself has a very high brand value, has a very high reputation in the industry, and can be used as a portal and image base for 500’s comprehensive industry expansion.
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