ŪŗÁ‚ŗŪŤŚ

Bitmainís $18 Billion IPO in Jeopardy as Q2 Earnings Report Looms

Bitmainís $18 Billion IPO in Jeopardy as Q2 Earnings Report Looms

If Bitmain wants to have their much-touted $18 billion IPO before the end of 2018 as announced they had better get a move on. In fact, at the rate their financial data is currently leaking, their pool of potential investors is shrinking daily.


A Fool and His Cash are Soon Parted

The first hints that all was not necessarily hunky dory came back in mid-August from Blockstream CSO, Samson Mow. The revelation that Bitmain had sold most of their Bitcoin (BTC) for Bitcoin Cash (BCH) rightly concerned investors.

It later transpired that Bitmain had lost around $330 million through this policy, although some estimates suggest it is closer to half a billion dollars.


A further set of leaked documents exposed by BitMEXexposed an even more worrying concern. In a falling market, only $105 million of Bitmain assets were cash, against $1.17 billion in cryptocurrency. Even ignoring this ĎSword of Damoclesí, thereís a bigger hurdle to Bitmainís future profitability, as highlighted by Bloomberg today.

Over half of the companyís assets consist of inventory and prepayments to its chip manufacturer, TSMC. When compared to the more liquid assets we see that Bitmain have $1.9 billion in prepayments and inventory, against $1.28 billion in coins and cash.


Bitmain Q2 Earnings Could Disappoint

The bitcoin mining market directly correlates with the price of the reward. Lower reward values mean less demand for mining rigs. Coupled with other hardware manufacturers producing more competitive hardware, this could mean a whole load of unshiftable stock.

If the value of cryptocurrency (and specifically bitcoin cash 00) continues to go down, along with a reducing demand for hardware, then Bitmain starts to look decidedly unhealthy. This has led some to question whether the IPO is simply an exit scam.

Simply put, things arenít looking good for the mining giant. Moreover, there are alsounconfirmed reportsfrom a Twitter account that claims to publish information from a ĎBitmain insider.í The rumors suggest that the mining giant is being sued by investors for material omission and misrepresenting financial information. Or rumors that the company is on the brink of bankruptcy.

The same account also estimates that Bitmain has lost almost half a billion dollars on its BCH position, which will not please investors in its Q2 earnings report that the company should disclose soon as part of the pre-IPO process.

Expect to hear a lot more about this debacle very soon.

Is Bitmain really in trouble or will its IPO proceed as planned? Share your thoughts below!

Images courtesy of Shutterstock, Twitter

The post Bitmainís $18 Billion IPO in Jeopardy as Q2 Earnings Report Looms appeared first on Bitcoinist.com.

18.09.2018 / 11:05 94
Bitmain Monopoly is Showing Cracks, According to Analysts Bitmain Monopoly is Showing Cracks,
The top cryptocurrency mining company might be losing its edge as demand for its products is under pressure and competition grows stronger, according
Bitmain IPO: Softbank and Tencent Reportedly ĎNot Involvedí Bitmain IPO: Softbank and Tencent
Two major corporations have publicly denied involvement with the prospective initial public offering (IPO) of cryptocurrency mining giant Bitmain.
Bitmain is Hodling Nearly $600 Million in Bitcoin Cash Bitmain is Hodling Nearly $600 Million
When Bitmain announced last year that it was throwing its weight behind bitcoin cash ahead of the latterís decision to pursue a divorce from the main
Bitcoin Cash Crunch: Bitmain IPO Makes Crypto Industry Uneasy Bitcoin Cash Crunch: Bitmain IPO Makes
Cryptocurrency mining giant Bitmain continues to gain attention over its initial public offering (IPO) as critics raise the alarm over its financial
Bitmain IPO ĎVery Sooní as Mining Giant Nets $1.1 Billion Profit in Q1 2018 Bitmain IPO ĎVery Sooní as Mining Giant
Bitcoin mining giant Bitmain is purportedly planning to go public on a $14 billion valuation. The company reportedly brought in $1.1 billion in net
Bitmain Raises $400 Million in Pre-IPO Funding, Now Valued at $12 Billion: Report Bitmain Raises $400 Million in Pre-IPO
Bitmain, the dominant force in bitcoin mining, has reportedly raised $400 million as it gears up to go public later this year. Regional media outlet
Comments (0)
Add a comment
Comment on