Bitmain, the world market leader for mining equipment, on the eve of an epic IPO - which could become the largest in the entire history of the IT market - is experiencing an equally epic publicity and information attack.
The fact is that, since Aug. 21, official refutations have started to appear on the internet from companies that were previously listed in the Bitmain investor list.
ReconnaissanceOn June 6, media presented information that Bitmain's IPO on the Hong Kong Stock Exchange was scheduled for September 2018 and, according to investment analysts, was expected to raise anywhere from $3 billion to $18 billion, thereby becoming the largest initial public offering in the IT market's history, beating Facebook with its $16 billion.
In the middle of the summer, the media reported that Bitmain had held its first round of the pre-IPO and that among the investors there was a co-owner of Uber, Japanese SoftBank and Chinese IT giant Tencent, which developed the WeChat platform.
In late August - theoretically on the eve of September's IPO, the analytical agency Sanford C. Bernstein & Co., which in 2000 merged with Alliance Capital, published a detailed report analyzing the challenges of Bitmain's IPO. The study is devoted to Bitmain and contains clear indications of the Chinese giant's loss of technological advantage, connected with increased competition and the purchase of a large amount of Bitcoin Cash, which could pose a significant risk to the company if the digital token declines.
Meanwhile at the Bitmain headquartersThe Chinese giant is consistently expanding its mining empire.
In August, Cointelegraph reported that NVIDIA left the mining equipment market, unable to withstand the severe competition of Bitmain.
At the presentation for investors, Bitmain reported that, since the end of 2017, it consistently traded Bitcoin Cash for any available Bitcoin, despite the fact that the company lost about $500 million.
The Bitmain owner predicted a rate of $100,000 of Bitcoin's fork - Bitcoin Cash - and a dominant position in the market by 2023, as he believes only BCH corresponds to the real vision of Satoshi Nakamoto.
The IPO process may be hindered by some of Bitmain's mistakes, such as "Producing too many units and buying too many speculative altcoins in a bull market," BitMEX analysts say.
Bitmain IPO: Trial by Fire for the Mining Equipment Giant
Published on Oct 5, 2018
by Cointele | Published on Coinage
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