News

Bitmain In A Deadlock Over IPO Regulatory Issues.

Leading Bitcoin mining company and ASIC’s manufacturer, Bitmain is currently in a deadlock because of Its attempt to launch an initial public offering.
News Outlet, The South China Morning post had published a report which gave details about how the Hong Kong stock exchange is agitated about granting approval to an IPO linked to the cryptocurrency market because of its turbulent nature. Of late the cryptomarket has witnessed several cryptomining firms close operations as a result of the unforseen price plunge that made cryptomining unprofitable and caused many cryptocurrencies to lose more than 75% of their market value within weeks.
The leading ASIC manufacturer on the 26th of September this year filed a $3 billion IPO that would lapse next year March. The listing rules stated that rejection or approval should be made within six months after all questions regarding the proposal are answered. The application expires if the regulators take over six months to issue a response.
Since then, the Hong Kong Stock Exchange has been quiet about the IPO, including the China International Capital Corporation (CICC) which is sponsoring the venture. The regulators in Hong Kong aim to have a proper regulatory framework in place to ensure that investors and other stakeholders are protected prior to the approval of a cryptoindustry IPO.
Struggling To Stay Afloat.
At present, Bitmain currently operates two of the biggest mining pools on the Bitcoin network, Antpool and BTC.com. Together they control 35% of the market, also the company dominates about 75% of the ASIC hardware market which indicates that changes in the Bitcoin ecosystem significantly affects Its margins.
Bowing to the harsh pressures of the cryptobears, Bitmain laid off it’s employees on the 10th of this month at Its development center in Ra’anana, Israel. The cryptofirm in response to the move, blamed the harsh cryptobears market that forced them to reconsider some of its projects. The Israel division of the cryptofirm was responsible for developing blockchain technology, mining pools and coming up with innovative artificial intelligence solutions.
A research from BitMEX revealed that Bitmain is experiencing major problems as a result of the cryptowinter and it may be incurring significant losses brought on by declining demand from miners.
Despite gaining over $1billion in profits during the first quarter of 2018, it’s $328 million move to purchase a Bitcoin cash stash backfired as investor capital is now very necessary for it to survive.
Bitmain is not the only one losing it’s shine during this cryptowinter, several companies are struggling to maintain a cryptobull.
An example is Giga Watt, the cryptomining firm which offers turnkey mining services, that filed for Chapter 11 in November after it was unable to pay off debts of about $7million. Electricity provider Neppel Electric, Talos construction, the Douglas County PUD, and Schmitt Electric were its creditors.

Related posts
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTETFNewsxbtusd

Bitcoin May Never Go Below $50k Once An ETF Is Approved, Declares On-Chain Analyst

Bitcoin may never drop below $50k asserts on-chain analyst Ki-Young Ju. But as usual, there are conditions that follow this possibility. In a tweet, Ju analyzed that Bitcoin could follow the same path that gold took in 2004 when the first…
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTNewsxbtusd

Quarterback Star Tom Brady Breaks Internet After Showing Interest In Bitcoin

Tom Brady, the American athlete who is widely regarded as the “greatest” quarterback in NFL history is the latest celebrity to show interest in the world’s most valued cryptocurrency Bitcoin. Brady who has a massive Twitter following of 1.9 million…
BitcoinBitcoin NewsbtcusdBTCUSDCBTCUSDTNewsxbtusd

Almost $200 Billion Worth Of Bitcoin Is Currently At Risk – Report Warns

A recently published 2021 crypto report by Opimas LLC, a finance-based management consultancy firm, has revealed that approximately 3,480,000 out of the world’s mined 18.5 million Bitcoin, stands vulnerable to attacks as a result of improper safekeeping. The 36-page report…