Credit China invests in Bitcoin mining company BitFury, announcing its entry into the blockchain industry

On May 4, 2016, Credit China Holdings Limited (Credit China, stock code: 8207) issued a press release stating that it had entered into an agreement with The BitFury Group Limited (BitFury) to invest approximately 6.38% of BitFury’s equity. Credit China will also establish a joint venture with BitFury in China to promote blockchain technology and develop blockchain-based Internet financial services.

According to public documents on the official website of Credit China, on May 3, 2016, Credit China and BitFury Group entered into a share purchase agreement to subscribe for 205,917 shares of BitFury Group's Series A preferred shares, with a total price of US$300,000,047.73, of which about one-third will be paid in cash and the balance will be paid by issuing consideration shares. The Series A preferred shares will be equivalent to approximately 6.38% of BitFury's total share capital and approximately 1% of the voting rights at the shareholders' meeting.

Credit China is a private enterprise listed in Hong Kong, with businesses including third-party payment, investment platform and online loan service platform. Its core business is Internet finance, and its P2P online loan platforms include First Mortgage and Financial Factory, and it has a stake in Wangxin Finance.

Founded in 2011 by Valery Vavilov and Valery Nebesny, BitFury is a world-leading Bitcoin blockchain infrastructure provider and transaction processing company, providing a range of blockchain software and hardware products to support commercial and government blockchain operations. The company has been profitable in the past few years, with total revenue exceeding $100 million. BitFury has established management offices in San Francisco, Washington, D.C., Hong Kong, Amsterdam and London, as well as data centers in Iceland and the Republic of Georgia. Previously, BitFury has publicly raised $60 million in financing. (BitFury: White Paper on Digital Assets on Public Blockchain)

Mr. Peng Yaojie, Vice Chairman and Chief Executive Officer of Credit China, said:

Blockchain is the ultimate universal ledger and the greatest computer science and cryptography invention of our generation. We are moving from the era of information exchange to the era of Internet value exchange, and all major financial institutions are paying close attention to this technology. We are honored to establish an alliance with BitFury, which will help us expand our horizons and understanding of blockchain technology and apply this technology to China's Internet finance sector, which has huge growth potential.