Yesterday, March 26, the application for the largest mining equipment manufacturer Bitmain for IPO expired. Information on its preparation was one of the most notorious events in the cryptocurrency industry of the last year. Moreover, during the pre-IPO, the company attracted about $ 700 million from Asian investors. Now investors are preparing preparing a class action against Bitmain.
The well-known critic Bitmain under the nickname BTCKING555 tweeted that it was $ 700 million collected from early investors that allowed the company to stay afloat for so long. If not for these investments, Bitmain would be bankrupt right now.
The critic met with a Bitmain investor to discuss the company's future. He believes that the company can only save the new bullish rally of Bitcoin: with a sharp increase in the value of BTC, the yield of its production will increase, which will increase both the demand for Bitmain products and increase the income from their mining activities.
For the third quarter of last year, Bitmain reported a loss of $ 500 million, even though according to their own forecasts, 2018 should have been extremely successful. As soon as information about this became available to the public, people stopped believing in the future of the IPO.
It all came to the conclusion that Bitmain did not hold an IPO. The application on the Hong Kong Stock Exchange automatically burned after six months of waiting, and the company did not renew it. Bitmain representatives said that the plans for an IPO are still in force, but when this happens, nobody knows.