The crypto mining equipment manufacturer Bitmain remains focused on its Initial Public Offering (IPO) as criticism raises the alert on its financial prospects.
As Bitcoinist announced in late-July, the company reported that it plans to conduct an IPO of $14 billion by the end of this year, after earning more than $1 billion in Q1 2018.
In the meantime, pre-IPO investor offering data has given rise to concerns about Bitmain’s financial outlook, focusing in particular on its massive Bitcoin Cash (BCH) stocks, which may not be liquid until the markets are converted before the IPO launch date.
“According to Bitmain’s investor deck before the IPO, they sold most of their Bitcoin (BTC) for Bitcoin Cash (BCH),” stated on Twitter Samson Mow from Blockstream.
The pre-ICO data issued in the past week suggests that several sources have argued that its level of investment in BCH may ultimately scare off the investors who are aware of Bitcoin Cash (BCH) liquidity status and the role of Bitmain in its safekeeping.
Bitmain IPO concerns the cryptocurrency industry
While Bitmain staff, among them the CEO Jihan Wu, is still hesitant to disclose the less complimentary second-quarter results and the alleged “secret” mining, analysts appear to concur that a bullish market for cryptocurrency would probably fix the liquidity issues.
“Bitmain will not launch an Initial Public Offering (IPO) until they have favorable market conditions, which means that there is likely to be a bullish market approaching the actual date of the IPO,” reads a blog post on this topic, published on Medium.com.
“However, once it is made public, shareholders will want to know why Bitmain continues to siphon off profits to underpin a failing currency and how they intend to liquidate their massive position in Bitcoin Cash (BCH),” affirmed Vijay Boyapati, a software engineer.
In conclusion, the Bitmain IPO (Initial Public Offering), expected to raise $14 billion by the end of the year, concerns the cryptocurrency industry due to the massive Bitcoin Cash (BCH) the crypto mining equipment manufacturer holds.