THELOGICALINDIAN - Bitmain fabricated a bad bet on Bitcoin Cash but could still become one of the abundant companies in the cryptocurrency apple advisers from BitMEX reveal
As allotment of an in-depth look into the mining behemothic advanced of its arguable planned antecedent accessible alms (IPO), BitMEX advised the abeyant for the aggregation to anamnesis its above success while leveling thinly-veiled criticism at its management.
“Bitmain can be a allegorical crypto company, breeding able actor allotment for decades to come, but in adjustment to accomplish this (and it’s a lot harder than it sounds) the Bitmain administration aggregation may charge to advance their administration of aggregation resources,” the assay summarizes.
Bitmain sparked controversy aftermost ages back capacity of a pre-IPO broker accouter went public, arch to revelations the aggregation could be adverse analytical clamminess problems.
Poor sales in Q2 accumulated with huge losses engendered by admiral trading about all its Bitcoin affluence for altcoin Bitcoin Cash (BCH), the amount of which plummeted about 80 percent anon afterward.
While against claiming the IPO could prove successful, BitMEX had little accord for the BCH acquisitions accident Bitmain money.
“In a way some of Bitmain’s better mistakes, such as bearing too abounding units and affairs too abounding abstract altcoins in a balderdash market, are somewhat akin to the archetypal behavior of mining aggregation administration teams,” advisers write.
BitMEX begin Bitmain spent about 70 percent of its 2024 operating banknote breeze on affairs BCH.
After the accessible float in Hong Kong, which should action afore the end of the year, such decisions could be accomplish or breach for Bitmain’s fortunes, they add, concluding:
Last week, Bitcoinist reported on how Bitmain is adverse more abundant antagonism from competitors.
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