Bitcoin, Cryptocurrency And Blockchain News

BTCC on Track to Sell 49 Percent of its Mining Pool for $17 Million


BTCC is one of the oldest cryptocurrency firms in the crypto space. It was founded by Bobby Lee, who is actually the brother to Charlie Lee (the creator of Litecoin) and boasts a variety of crypto-related services. Formerly called BTC China, the company first took shape in 2011 and has now grown to include various departments, including a mining department called BTCC Pool Limited, a Bitcoin wallet called Mobi and an exchange platform that supports USD / BTC trading pairs.

Currently, the company is based in Hong Kong and if news from CoinDesk is anything to go by, the company’s mining department (BCC Pool Limited) is planning to sell about half of its equity. In fact, BTCC Pool Limited has already published an MOU that names Value Convergence (VC) holdings limited as the potential buyer.

Further information from a Hong Kong-based financial service also indicates that the deal is set to raise $17 million when and if the two entities agree. Even though the MOU is not a legally binding proposed acquisition, BTCC pool Limited has agreed to sell 49 percent stake of its shares to Value Convergence (also a financial service based in Hong Kong).

More About Value Convergence

VC Group is a brokerage service provider in the securities sector. The proposed acquisition of BTCC is set to expand the company’s presence in the fintech world, given the emerging dominance of cryptocurrencies. According to the MOU between VC Group and BTC Pool Limited, the deal will be held through Value Convergence’s subsidiary that goes by the name: Initial Honor Limited.

Even though BTCC mining pool’s hashing power has decreased from its previous 3.3 percent of the entire BTC hashing power at the beginning of the year, VC Group is bound to get a great deal considering that the current BTCC mining pool accounts for about 1.1 percent of Bitcoin’s overall hashing power.

Future Plans for BTCC

In light of the recent attacks on Bitcoin exchanges, BTCC will be planning to optimize its cold storage in order to give better levels of security to customers’ funds. In a statement given to CCN, the company stated that it takes security very seriously ” and is “proud of the fact that we have never been compromised” As one of China’s oldest and biggest crypto exchange platforms, it seems as if the move to shift operations to Hong Kong earlier this year has come with good tidings in terms of even more developments for the company.

Image Credit: Deposit Photos

What do you think about BTCC Pool Limited being acquired by VC Group? Share your thoughts and opinions in the comments section.