Go back to the Bitmain IPO, what does that mean?

Step back to the Bitmain IPO, what does that mean? A serious blow to the whole sector, that's what happened.

Bitmain Technologies announced that it had abandoned its plans for the IPO after the Hong Kong Stock Exchange listing terms were exceeded early next week, sparking a debate on the future of the entire banking sector. criptovalute.

The company said in a note that it plans to try again at the appropriate time in the future, saying that "despite the enormous potential of the cryptocurrency and blockchain industry, it remains a relatively young industry that is still proving its worth. "

Bitmain mining

The mining giant Bitcoin (remember that we can do Bitcoin mining with app e Bitcoin Mining Online) drew $ 700 million from investors across Asia until its long-awaited initial public offering, which then sank into thin air. Some investors have already announced that they will organize themselves to take class-based legal action against the company, although it remains to be seen whether or not this lawsuit actually materializes.

But why did Bitmain take this step backwards? Of course, the decision not to move forward could be linked to the volatility of cryptocurrencies and to the fact that they arrived on the market at a time when prices are perhaps not as high as expected in the initial plans, but the choice to abandon the IPO project seems to be rather related to Bitmain profitability. Despite bringing more than $ 700 million in profit in the first half of 2018, the company reported a net loss of $ 500 million in the third quarter of 2018 and would have spent $ 500 million on failed chips in the past 18 months. .

The Hong Kong Exchange has said in the past that it is reluctant to approve the IPOs of Chinese manufacturers of bitcoin mining equipment due to the volatility of the sector and uncertainties about the sustainability of their profits. Add to that the relatively poor sales of Bitmain, the technical problems with the failed chips and the already mentioned falling cryptocurrency price.

IPO projects

Meanwhile, while the IPO projects are closed for the moment, so are its plans to sell new hardware. A few days ago, for example, Bitmain announced that its next generation of the series Antminer S17 will go on sale globally on April 9This is the most powerful mining hardware in its class, which is expected to maximize mining profitability by significantly increasing hashrate and increasing energy efficiency by 28% over the previous model.