- BIT Mining (NYSE:BTCM) trades 3.3% down after hours after deciding to eliminate its variable interest entity (VIE) structure and to dispose of its Chinese lottery related business for nil consideration.
- The company's consolidated affiliated subsidiaries under the VIE structure, were primarily engaged in its Chinese lottery related business, which contributed RMB2.7M ($0.4M), or 13.6%, of the total revenue and net loss of RMB9.8M ($1.5M) for the three months ended Mar. 31, 2021.
- As of Mar. 31, 2021, total assets held by the VIE subsidiaries represented RMB82.8M ($12.6M), or 6.3%, of its total assets and net debt held by the VIE subsidiaries was RMB161.6M ($24.6M).
- The VIE subsidiaries will be deconsolidated and their financial results will no longer be included in financial statements.
- With the Chinese lottery related business reporting continued losses, the exclusion will have no material impact on financials.
- It plans to focus on the overseas crypto mining business.