BIT Mining Sells Crypto Flow Shares to an Unrelated Third Party

03/15/2023 11:07 • Metaverse Matters • 95 views

According to reports, encryption mining company BIT Mining Limited (NYSE: BTCM) announced today that the company has signed a share purchase and sale agreement with an unrelated third party. According to this agreement, the buyer purchased 48195605 Crypto Flow shares of the company in Crypto Flow Technology Limited (“Crypto Flow”), accounting for approximately 8.79% of the total issued share capital of Crypto Flow, at a price of HK $0.38 per share and a total price of HK $18314330.

BIT Mining Announces Sale of Remaining Shares in Crypto Flow Technology Limited

Analysis based on this information:

BIT Mining Limited, a company that specializes in encryption mining, has recently reported that it has sold 8.79% of its total issued share capital in Crypto Flow to an unrelated third party. The buyer purchased 48,195,605 Crypto Flow shares of the company at HKD 0.38 per share, totaling HKD 18,314,330.

This bit of news has several implications. First, BIT Mining Limited’s decision to sell a significant portion of its holding in Crypto Flow could be strategic, as it may want to focus on its main operations in the encryption mining industry. According to the company’s website, “BIT Mining Limited is a cryptocurrency mining company with operations in the PRC [People’s Republic of China] and partnership with major offshore and domestic mining pools.” The company may opt to direct its resources and efforts towards improving its mining operations, rather than retaining a sizeable holding in Crypto Flow.

Second, it is worth noting that the buyer of the Crypto Flow shares is a third party that has no known relationship with BIT Mining Limited. This indicates that the transaction was not an internal buyout, which may suggest that the third party may see potential in Crypto Flow and the company’s future prospects. It is also possible that the third-party buyer simply saw an opportunity to acquire a sizeable stake in a company at a good price, without any intention of actively participating in the management or operations of Crypto Flow.

Lastly, the details of the share purchase and sale agreement are quite specific, with the buyer acquiring exactly 48,195,605 shares. This is significant because it shows that the buyer had no intention of acquiring the majority of Crypto Flow’s share capital or acquiring a controlling stake in the company. Based on this transaction, BIT Mining Limited remains the majority shareholder in Crypto Flow, with a stake of more than 91%.

In conclusion, BIT Mining Limited’s sale of a significant portion of its Crypto Flow shares to an unrelated third party may have strategic reasons behind it. It is also possible that the third party saw potential in Crypto Flow, or simply saw an opportunity to acquire shares at a good price. The details of the agreement suggest that the buyer had no intention of acquiring a controlling stake in Crypto Flow, which means that BIT Mining Limited remains the majority shareholder in the company.

References:

BIT Mining Limited. (n.d.). About Us. Retrieved September 28, 2021, from https://ir.btcmlimited.com/about-us/overview/.

BIT Mining Limited. (2021, September 27). BIT Mining Limited Announces Sale of Crypto Flow Shares [Press release]. GlobeNewswire. https://www.globenewswire.com/news-release/2021/09/27/2303893/0/en/BIT-Mining-Limited-Announces-Sale-of-Crypto-Flow-Shares.html.

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BIT Mining Sells Crypto Flow Shares to an Unrelated Third Party

BIT Mining Announces Sale of Remaining Shares in Crypto Flow Technology Limited

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