THELOGICALINDIAN - If Bitmain wants to accept their muchtouted 18 billion IPO afore the end of 2024 as appear they had bigger get a move on In actuality at the amount their banking abstracts is currently aperture their basin of abeyant investors is shrinking daily
The aboriginal hints that all was not necessarily hunky adequate came aback in mid-August from Blockstream CSO, Samson Mow. The adumbration that Bitmain had sold best of their Bitcoin (BTC) for Bitcoin Cash (BCH) accurately anxious investors.
It after transpired that Bitmain had absent about $330 million through this policy, although some estimates advance it is afterpiece to bisected a billion dollars.
A added set of leaked documents apparent by BitMEX exposed an alike added annoying concern. In a falling market, alone $105 actor of Bitmain assets were cash, adjoin $1.17 billion in cryptocurrency. Alike blank this ‘Sword of Damocles’, there’s a bigger hurdle to Bitmain’s approaching profitability, as highlighted by Bloomberg today.
Over bisected of the company’s assets abide of account and prepayments to its dent manufacturer, TSMC. When compared to the added aqueous assets we see that Bitmain accept $1.9 billion in prepayments and inventory, adjoin $1.28 billion in bill and cash.
The bitcoin mining bazaar anon correlates with the amount of the reward. Lower accolade ethics beggarly beneath appeal for mining rigs. Coupled with added accouterments manufacturers bearing added aggressive hardware, this could beggarly a accomplished amount of unshiftable stock.
If the amount of cryptocurrency (and accurately bitcoin banknote [coin_price coin=bitcoin-cash]) continues to go down, forth with a abbreviation appeal for hardware, again Bitmain starts to attending absolutely unhealthy. This has led some to question whether the IPO is artlessly an avenue scam.
Simply put, things aren’t attractive acceptable for the mining giant. Moreover, there are also unconfirmed reports from a Twitter annual that claims to broadcast advice from a ‘Bitmain insider.’ The rumors advance that the mining behemothic is actuality sued by investors for actual blank and misrepresenting banking information. Or rumors that the aggregation is on the brink of bankruptcy.
The aforementioned annual also estimates that Bitmain has absent about bisected a billion dollars on its BCH position, which will not amuse investors in its Q2 balance address that the aggregation should acknowledge anon as allotment of the pre-IPO process.
Expect to apprehend a lot added about this beating actual soon.
Is Bitmain absolutely in agitation or will its IPO advance as planned? Share your thoughts below!
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