the strong dependence from the Bitcoin market could jeopardise the planned IPO from the Mining giants Bitmain. Apparently, the high volatility of the Mining business, discourages the Hong Kong Stock Exchange from lists of the first companies in this industry.
By Christopher clover
18. December 2018ShareFacebookTwitterLinkedInxingemail
The bear market in 2018 has hit not only Hodlern, but also crypto and Blockchain – Start-ups-sensitive. Depending on the extent of their dependence on the crypto-exchanges with the decline of Bitcoin & co. forced for many aufsprießende company’s strategic realignment. The Mining industry is among the industries that are considered to be particularly market – and price depends on claimant. Now to get the Mining market leader to feel Bitmain in different ways. Thus, the ASIC manufacturer was forced to close not only a development center in Israel due to the ongoing bear market. In addition, the Mining has nibble duties, the company is currently also in the U.S.-Criminal, as his Bitcoin Antminer fall under the category of “electrical machniery apparatus”. Bad news for a company that was planning the IPO.
“There is a real risk, that they could not exist in one or two years,”
After the Pre-IPO had the expectations of Bitmain, could move the IPO in Hong Kong until further notice. Because, in the case of the Hong Kong Stock Exchange (HKSE) procrastinates, you apparently still lists the Mining giant. The reason: the high volatility of The Bitcoin markets. For example, according to Insider Reports, the Coindesk:
“The stock market is very hesitant to approve this Bitcoin-Mining-companies actually, since the industry is so volatile. There is a real risk, that they could not exist in a year or two.“
Due to the novelty of the industry, there are no precedent cases. HKSE does not burn, apparently, to assume a pioneering role:
“The HKEX does not want to be the first exchange in the world, which [approves of such an IPO] and then to see how the company dies”,
thus, the anonymous source continued.
In the first half of the year Bitmain was able to record a profit of 740 million US dollars. In addition to the sale of Mining Hardware, Bitmain also operates one of the largest Mining Pools. The falling rates have made the Bitcoin Mining become less profitable, and concern for buckling of the demand for ASIC miners. In addition, Bitmain should also hold an estimated six percent of the units of Bitcoin Cash (BCH). The course has been withdrawn by the Hash Was particularly affected.
