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Uber's Largest Shareholder SoftBank Denies Deal With Bitmain

Uber’s largest shareholder, Softbank (Japan’s trillion-dollar multinational holding conglomerate) has officially denied reports stating that the company is engaged in some partnership deal with the Bitcoin) mining firm, Bitmain. Sometimes last week, it was  announced by mainstream media platforms Softbank is patnering with Bitmain, however, the company has come out to debunk such news.
According to the reports last week which shows that the company had allegedly completed negotiations and sealed a partnership deal for a pre-Initial Public Offering (IPO) financing which is estimated at $15,000. Both Chinese tech giant, recently and Japan’s Softbank; another behemoth with about 15 Percent shareholdings in Uber (which is the highest individual shareholdings in the transportation app’s company) were reportedly involved.
Kenichi Yuasa, who is a Corporate Communication officer of Softbank Group Corp, after witnessing the rumors which imply that Tencent and Softbank were in an actual partnership agreement, debunked the rumors and expressly stated that:

“Neither the SoftBank Group Corp. nor the SoftBank Vision Fund were in any way involved in the deal.”

Reports have it that there have been several attempts to hear from the Tencent side of the story has been to no avail as the company has taken no concrete action as to addressing the public to either affirm or deny the authenticity of the release. On the other hand, Bitmain has not attempted to inform the public about the position of the company on the matter.
It is also relevant to note that Bitmain is one of the biggest companies in the cryptocurrency community and it is currently expanding from the crypto mining industry to Artificial Intelligence (AI). It is very pertinent to witness how the bitcoin mining kingpin IPO plays out in the coming months as it is one of the four most prominent cryptocurrency-related businesses and companies in the world (along with Coinbase, Upbit, and Binance) as their recent pre-IPO investor deck revealed quite a few insightful information.

The Partnership Agreement Rumor

Initially, the report (which is now debunked) of Tencent and Bitmain partnership deal was first conveyed by the Chinese publications QQ on August 4 with the Google translated version of the QQ publication, stating that:

“The mainland officially completed the Pre-IPO round signing. This round of investors includes Tencent, Softbank [sic], and China Gold. The current round of financing is 1 billion US dollars, and the pre-investment valuation is 14 billion.”

Following the release of the refuted reports, neither Tencent nor Softbank made any effort to deny having any partnership deal with bitcoin mining giant, Bitmain.
Almost immediately after QQ published this story,  mainstream media platforms, including crypto-based media platforms has picked the news and reported it; a major media platform even reported on August  14 that Vitamin had closed a  “$1 billion funding round led by Chinese tech giant Tencent and Japan’s SoftBank.” Even Yahoo! Finance also reportedly published this story on Bitmain’s valuation.

Hints Proceeding the Refuted Reports

As the media started reporting and reporting the information stating that Tencent allegedly participated in a deal with the Bitcoin mining giant, Bitmain, which brought the company’s valuation to a staggering amount of about $15 billion. Blockstream CSO, Samson Mow, posted on his Twitter social media platform on August 11 on an image reportedly from Bitmain pre-IPO investors’ deck which shows that the company has a considerable amount of Bitcoin Cash (BCH).
Also,  on August 12, the Blockstream CSO, Samson Mow tweeted two images of Bitmain Q1 result,  one in Chinese and the other from Morgan Stanley, (an American Multinational Investment Bank and Financial Services  Corporation) commenting that:

“Why is Bitmain raising capital so fast & only showing Q1 results to pre-IPO investors? We’re well into Q3 now. The reason is Q2 was a disaster. Bitmain is sitting on a massive USD 1.24 billion in inventory & S9 prices dropped by ~85%! Q2 losses range in the $600-700 millions.”

While responding to Samson Mow’s tweet,  Cryptocurrency Herpes Cat released a publication which gave not only a reasonable explanation but also a series of theories of how Bitmain’s acquisition of that overwhelming amount of BCH was possible other than selling  BTC for BTC as proposed by Samson Now. They also explained what they were doing with their ASIC miners in the digital currency market, stating that:

“How do you realize the value of this monolith crypto business and your holdings? You IPO and pass the bag on in one huge lumped stock offering and hope investors don’t realize all of your current assets are very, very illiquid.”

Earlier in June, Johan With, CEO Bitmain had reportedly gave an hint at the firm’s stride to launch its IPO on the Hong Kong Stock Exchange,  Chinese publisher QQ (which is the same source that allegedly claims that Tencent and Softbank were in a recent partnership agreement)  has made a suggestion that the firm’s estimated valuation is at $30billion.
It appears that the denied investment came after a year of the report that seemed to indicate Bitmain’s astonishing profitability which implies that both parties’ actions and inactions culminated into the supposed erroneous report which is now being denied by Softbank’s representative though Bitmain and Tencent are yet to address the public on this issue.

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