Today, Bitcoin cash rallied, climbing more than 20% after Bitmain filed an application to hold an initial public offering (IPO).
The digital currency, which is a fork of the original bitcoin, climbed to $538.37 at 12:04 UTC on CoinMarketCap.
By the way, bitcoin currency was up 23.7% from the beginning of the day, reaching a nearly three-week high, extra CoinMarketCap data showed.
Later on, the cryptocurrency faintly slightly, trading at $519.03, but was still up more than 20% in the last day.
When explaining the sharp growths in the price of bitcoin cash, several analysts highlighted the key role played by Bitmain’s recent IPO statement.
“This spike was definitely caused by Bitmain’s IPO filing,” said Mati Greenspan, senior market analyst for social trading platform eToro.
Bitmain, one of the world’s largest digital currency miners, filed a catalog for the offering on Wednesday and according to CoinDesk., representing its intention to offer securities to the public,
The document reveals that the company brought in more than $700 million worth of revenue throughout the six months ending June 2018, MarketWatch described. This figure represented an 800% increase over the equal time in 2017.
According to MarketWatch, the filing also indicates considerable growth in top-line functioning, as Bitmain’s revenue was $2.8 billion during the period, a ten-fold growth from the same time last year.
Filing’s Timing ‘Impeccable’
Greenspan said the timing of the IPO filing was “impeccable,”. Also mentioned “as the price began to rise within moments of the news release. They also opened up their financial records for the first time, which revealed that they’re in excellent standing.”
Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet, similarly noted the impression that the offering growths had on bitcoin cash.
The filing “definitely influences the price,” he stated.
“It has been no secret that Bitmain holds massive amounts of BCH, but now that they are going public they are going to fill their already immense treasure chest with more money, and I’m confident a good chunk of it will go towards the development of BCH. Exciting times ahead for Roger and Jihan.”