Bitmain should start to get move if they they want to have their much-touted $18 billion IPO before the end of this year. According to the financial data that is leaking, their pool of potential investors seems to shrink day by day.
As it is known, Bitmain sold most of their Bitcoin (BTC) for Bitcoin Cash (BCH) and this action made the investors concerened. Then, a news was published that Bitmain lost $330 million thhorugh this policy. However, some people estimate that the amount is closer to $500 million.
More worrying concern was exposed by BitMEX when a further set of documents were leaked. According to a claim,Bitmain had almost $1.17 billion in cryptocurrency but they had only $105 million cash.
Bitmain Q2 Earnings May Disappoint
As the bitcoin mining market is directly related with the price of the Bitcoin, lower reward values mean less demand for mining rigs. So if the value of Bitcoin continues to decrease, that will not good for Bitmain. In this case, the question about whether the IPO is simply an exit scam has appeared.
In other words, things aren’t going well for Bitmain, the mining giant. Moreover, there are some rumors that the mining company is being sued by investors because of the reason of material omission and also the company is presenting wrong financial information.
So the question is if Bitmain is really in trouble or will its IPO proceed as planned. You can leave your comments and share your thoughts with us.