Bitmain forced to delay Hong Kong IPO amid crypto-mining decline

Bitmain is known for high-performance processors suited for high-speed computing. But the crash of bitcoin and other virtual currencies has squeezed …

HONG KONG — Cryptocurrency mining equipment designer Bitmain Technologies has postponed its stock market listing after failing to gain approval from the Hong Kong bourse, highlighting the headwinds facing the virtual currency sector following last year’s bitcoin crash.

The Beijing-based company controls roughly 70% of the global market for crypto-mining equipment. Bitmain filed last September for an initial public offering in Hong Kong, but the company said Tuesday that its six-month application period had expired without receiving approval.

“We will restart the listing application work at an appropriate time in the future,” the company said on its website. As a unicorn, or an unlisted start-up valued at more than $1 billion, Bitmain has drawn intense interest from investors as it prepared for a stock market debut.

The Hong Kong exchange has not revealed details about its review process. Many suspect that the bourse questioned the stability and sustainability of the crypto-mining sector.

Crypto miners solve complex mathematical formulas to verify transactions and earn cryptocurrencies in the process. Bitmain is known for high-performance processors suited for high-speed computing. But the crash of bitcoin and other virtual currencies has squeezed the margins of currency-mining, denting demand for equipment as well.

“We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value,” Bitmain said. “We hope regulatory authorities, media and the general public can be more inclusive to this young industry.”

Bitmain said it has taken steps for “rationalization and optimization,” including job cuts and a leadership change. The company also has integrated chip design, hardware and software operations.

China’s top three makers of crypto-mining equipment — including Ebang International and Canaan — filed for an IPO last year, but none has received approval. Ebang has filed again in Hong Kong, while Canaan is expected to pursue a listing elsewhere.

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Cryptocurrency mining equipment maker Bitmain bails on IPO, for now

Cryptocurrency mining equipment maker Bitmain Technologies said on Tuesday that it had postponed its plan to go public, citing a plunge in digital …

Cryptocurrency mining equipment maker Bitmain Technologies said on Tuesday that it had postponed its plan to go public, citing a plunge in digital currency prices.

On Monday, the company’s expiration date for its initial public offering lapsed, and on Tuesday, the company confirmed that plans to list on Hong Kong’s stock exchange had been put on the back burner.

“Bitmain’s listing application to HKex in September 2018 has reached its 6-month expiration date. We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value. We will restart the listing application work at an appropriate time in the future,” the company said in a news release.

The Beijing-based company first filed its IPO plans in September 2018 when it released financial statements showing a staggering $700 million revenue for the six months ending June 2018 on revenue of $2.8 billion. Additionally, as of June 30, 2018, the company said its collection of digital currencies was valued at $886.9 billion.

Read:Bitcoin mining giant Bitmain says it booked $700 million first-half profit as it files for IPO

However, as crypto prices tumbled, so did the company’s profitability. In February, CoinDesk reported that the company lost $500 million in the third quarter of 2018.

Bitcoin

Read:Here’s how much it costs to mine a single bitcoin in your country

Since peaking toward the end of 2018, the price of major cryptocurrencies tumbled as much as 90%, with the total value of all cryptocurrencies losing as much as $600 billion, squashing plans for a number of crypto-related firms. “The bear market at the end of 2018 brought both challenges and opportunities that Bitmain will work hard at addressing in 2019,” the company said.

Despite the setback, the company said it continues to invest in the nascent industry. “We continue to fund open-source developers, projects and organizations. For those that we see potential and share our vision, we fund them, often with no strings attached.”

Bitmain did not immediately respond to a request for further comment.

In most recent trade, one bitcoin BTCUSD, +1.39% fetched around $3,900, mostly unchanged on the year, but down close to 80% from its all-time high near $20,000.

Read:Mining bitcoin is 3 times more expensive than mining gold, research paper finds

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Cryptocurrency miner Bitmain lets Hong Kong IPO application lapse

HONG KONG (Reuters) – Bitmain Technologies, the world’s largest designer of products for mining cryptocurrencies, on Tuesday let its application for …

HONG KONG (Reuters) – Bitmain Technologies, the world’s largest designer of products for mining cryptocurrencies, on Tuesday let its application for a Hong Kong initial public offering (IPO) lapse, becoming the latest cryptocurrency company to shelve plans to go public.

Bitcoin mining computers are pictured in Bitmain’s mining farm near Keflavik, Iceland, June 4, 2016. REUTERS/Jemima Kelly

Bitmain’s application lapsed on Tuesday, six months after it was filed, the Hong Kong stock exchange’s website showed.

“We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value,” the company said on its website. “We will restart the listing application work at an appropriate time in the future.”

Sources had previously told Reuters the company was aiming to raise at least $3 billion in its IPO.

Bitmain designs different microchips specialized for mining cryptocurrencies and for artificial intelligence applications, as well as manufacturing cryptocurrency and AI hardware, and managing crypto mining farms.

Bitmain also named Haichao Wang as CEO of the company while Micree Zhan and Jihan Wu, the co-founders of Bitmain, will continue to be directors.

The reputation of cryptocurrencies, and particularly exchanges, has been hit by fears of price volatility as well as high-profile hacks and infrastructure failures.

Hong Kong officials had raised questions about the sustainability of miners’ business models given the falling price of bitcoin, sources have said.

The crypto market peaked in late 2017, when trading volumes surged and bitcoin, the largest cryptocurrency, reached a high just above $20,000. Bitcoin’s price has fallen more than 80 percent since then, and trading volumes have slumped.

Bitcoin was worth $3,898.12 on Tuesday.

Smaller cryptocurrency mining equipment maker Canaan Inc, let its own IPO application lapse last year.

This leaves cryptocurrency mining equipment maker Ebang International Holdings as the only one currently in the running for a listing in the financial hub. Ebang refiled its application in December to avoid its lapsing.

Reporting by Julia Fioretti; Editing by Shreejay Sinha and Jane Merriman

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Cryptocurrency miner Bitmain lets its Hong Kong IPO application lapse

By Julia Fioretti. HONG KONG (Reuters) – Bitmain Technologies, the world’s largest designer of products used for mining cryptocurrencies, on Tuesday …

By Julia Fioretti

HONG KONG (Reuters) – Bitmain Technologies, the world’s largest designer of products for mining cryptocurrencies, on Tuesday let its application for a Hong Kong initial public offering (IPO) lapse, becoming the latest cryptocurrency company to shelve plans to go public.

Bitmain’s application lapsed on Tuesday, six months after it was filed, the Hong Kong stock exchange’s website showed.

“We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value,” the company said on its website. “We will restart the listing application work at an appropriate time in the future.”

Sources had previously told Reuters the company was aiming to raise at least $3 billion in its IPO.

Bitmain designs different microchips specialized for mining cryptocurrencies and for artificial intelligence applications, as well as manufacturing cryptocurrency and AI hardware, and managing crypto mining farms.

Bitmain also named Haichao Wang as CEO of the company while Micree Zhan and Jihan Wu, the co-founders of Bitmain, will continue to be directors.

The reputation of cryptocurrencies, and particularly exchanges, has been hit by fears of price volatility as well as high-profile hacks and infrastructure failures.

Hong Kong officials had raised questions about the sustainability of miners’ business models given the falling price of bitcoin, sources have said.

The crypto market peaked in late 2017, when trading volumes surged and bitcoin, the largest cryptocurrency, reached a high just above $20,000. Bitcoin’s price has fallen more than 80 percent since then, and trading volumes have slumped.

Bitcoin was worth $3,898.12 on Tuesday.

Smaller cryptocurrency mining equipment maker Canaan Inc, let its own IPO application lapse last year.

This leaves cryptocurrency mining equipment maker Ebang International Holdings as the only one currently in the running for a listing in the financial hub. Ebang refiled its application in December to avoid its lapsing.

(Reporting by Julia Fioretti; Editing by Shreejay Sinha and Jane Merriman)

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Chinese Companies Occupies One-third of the World’s Unicorns, ByteDance Tops the List

… Bitmain Technologies ($12B), DJI Innovations ($10B) and Chehaoduo ($7B) were the top five Chinese companies in the list created by CB Insights, …

Ninety-four Chinese entities have reached unicorn status, led by ByteDance, the world’s most valuable private company valued at $75 billion.

SEE ALSO: China’s Horizon Robotics Becomes the World’s Highest Valued AI Chip Unicorn

Didichuxing
Didichuxing (Source: Didi)

Following Bytedance, Didi ($56B), Bitmain Technologies ($12B), DJI Innovations ($10B) and Chehaoduo ($7B) were the top five Chinese companies in the list created by CB Insights, covering areas like media, transportation, hardware and e-commerce.

$1B+ Market Map: The World’s 326 Unicorn Companies In One Infographic https://t.co/nb0hzyjkub

— CB Insights (@CBinsights) March 14, 2019

China came in second place with 29 percent in terms of geographic shares of unicorns.

Last year, among the 119 new companies that joined the global unicorn club, 37 were Chinese companies. These billion-dollar companies are valued totally at $84 billion dollars, led by Beijing-based Bitmain Technologies. Areas they operate in include media, healthcare, transportation, and education.

Top ten unicorn startups
Top ten unicorn startups (Source: CBInsights)

“China is rapidly becoming the land of the unicorns,” CB Insights said.

There are 326 private companies around the world valued at more than $1 billion, with a collective worth of nearly $1.1 trillion and have raised a combined total of over $271B.

Featured Image Source: bitfinancial.news

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