Bitcoin Cash Crunch: Bitmain IPO Makes Crypto Industry Uneasy
HomeCryptocurrency NewsBitcoinist.com

Bitcoin Cash Crunch: Bitmain IPO Makes Crypto Industry Uneasy

Cryptocurrency mining giant Bitmain continues to gain attention over its initial public offering (IPO) as critics raise the alarm over its ...

Venezuela Bitcoin Trading Hits New Record As Maduro Confirms Petro Launch
Circle Set to Acquire Crowdfunding Leader SeedInvest
British Cryptocurrency Exchange ‘Coinfloor’ Announces Job Cuts

Cryptocurrency mining giant Bitmain continues to gain attention over its initial public offering (IPO) as critics raise the alarm over its financial outlook.


Bitcoin Cash Bets

As Bitcoinist reported at the end of July, the manufacturer announced its plans to hold a $14 billion IPO before the end of 2018, having achieved Q1 profits of over $1 billion.

Since then, data about the offering to pre-IPO investors have raised suspicions over Bitmain’s prospects, doubts specifically focusing over its huge reserves of altcoin Bitcoin Cash (BCH), which would remain illiquid unless markets transformed prior to the IPO date.

“According to the Bitmain pre-IPO investor deck, they sold most of their [Bitcoin] for [Bitcoin Cash],” Blockstream CSO Samson Mow wrote on Twitter August 11.

‘Very, Very Illiquid’

The pre-ICO figures the company released last week saw many sources conclude its degree of investment in BCH could ultimately spook investors who understand the state of the altcoin’s liquidity and Bitmain’s role in preserving it.

Beyond BCH, Bitmain’s undisclosed but likely underwhelming Q2 performance, lack of competitiveness, unsuccessful recent product launch and the cryptocurrency bear market are all factors stacked against it.

“How do you realize the value of this monolith crypto business and your holdings? You IPO and pass the bag on in one huge lumped stock offering and hope investors don’t realize all of your current assets are very, very illiquid,” a blog post dedicated to the situation published August 13 reads.

Bitmain

While Bitmain officials including CEO Jihan Wu remain tight-lipped about called to disclose Q2’s less flattering performance and even alleged ‘secret’ altcoin mining, commentators appear to agree that a cryptocurrency bull market would likely smooth over the cashflow problems.

Specifically, “Bitmain won’t IPO until they have ‘favorable market conditions’ which means there’s probably a bull market coming in the lead up to the actual IPO date,” the blog post continues.

In his own analysis meanwhile, software engineer Vijay Boyapati was less optimistic.

“However, once public, shareholders will want to know why Bitmain is continuing to divert profits to propping up a failed currency and how they intend to liquidate their massive position in [Bitcoin Cash],” ‏he warned.

What do you think about Bitmain’s IPO? Let us know in the comments below!


Images courtesy of Shutterstock

The post Bitcoin Cash Crunch: Bitmain IPO Makes Crypto Industry Uneasy appeared first on Bitcoinist.com.



from Bitcoinist.com https://ift.tt/2Mh72Sc
Name

Bitcoin News,5117,Bitcoinist.com,4741,Cryptocurrencies,4741,Cryptocurrencies Latest News,5117,Cryptocurrency Latest News,4741,Cryptocurrency News,9858,
ltr
item
Cryptocurrency Latest News: Bitcoin Cash Crunch: Bitmain IPO Makes Crypto Industry Uneasy
Bitcoin Cash Crunch: Bitmain IPO Makes Crypto Industry Uneasy
https://bitcoinist.com/wp-content/uploads/2018/08/shutterstock_659915962-640x400.jpg
Cryptocurrency Latest News
http://cryptocurrencylatest.blogspot.com/2018/08/bitcoin-cash-crunch-bitmain-ipo-makes.html
http://cryptocurrencylatest.blogspot.com/
http://cryptocurrencylatest.blogspot.com/
http://cryptocurrencylatest.blogspot.com/2018/08/bitcoin-cash-crunch-bitmain-ipo-makes.html
true
1236144943044321696
UTF-8
Loaded All Posts Not found any posts VIEW ALL Readmore Reply Cancel reply Delete By Home PAGES POSTS View All RECOMMENDED FOR YOU LABEL ARCHIVE SEARCH ALL POSTS Not found any post match with your request Back Home Sunday Monday Tuesday Wednesday Thursday Friday Saturday Sun Mon Tue Wed Thu Fri Sat January February March April May June July August September October November December Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec just now 1 minute ago $$1$$ minutes ago 1 hour ago $$1$$ hours ago Yesterday $$1$$ days ago $$1$$ weeks ago more than 5 weeks ago Followers Follow THIS CONTENT IS PREMIUM Please share to unlock Copy All Code Select All Code All codes were copied to your clipboard Can not copy the codes / texts, please press [CTRL]+[C] (or CMD+C with Mac) to copy