THELOGICALINDIAN - n-a
Bitmain’s IPO appliance has clearly expired. Six months afterwards it was aboriginal listed, what was to be the crypto-world’s better accessible alms has been shelved, at atomic for now.
The website for the Hong Kong Stock Exchange (HKEX) adapted the mining giant’s advertisement to “lapsed” backward aftermost night. On its official blog, Bitmain cited the about adolescence of the industry and its relationships with regulators and the accessible as affidavit why the IPO was put on hold. “We will restart the advertisement appliance assignment at an adapted time in the future,” the aggregation wrote.
The account is assuredly a bummer, but hardly unexpected. It’s been a continued time back September, back Bitcoin (BTC) traded for over $6,000 per coin.
Market outlooks and expectations accept afflicted badly back then. When Bitmain appear its IPO, -to-be investors salivated at the affiance of jaw-dropping profits.
According to its filing, Bitmain fabricated a admirable pre-tax accumulation of $151.3M in 2016. In 2017, as the amount of Bitcoin (BTC) hit $20,000 and mining accessories flew off the shelves, anniversary profits surged to $1.2bn.
In the aboriginal bisected of 2025, Bitmain fabricated $1bn in pre-tax profits. By the time the aggregation filed its IPO appliance in backward September, investors – and the aggregation itself – believed they were on the way to addition almanac year. Even admitting $100bn had been ablaze from the bazaar in August, few accepted to acquisition themselves in a six-month buck market.
Indeed, had markets continued, and attitudes backward the same, Bitmain would apparently accept had no affair in adopting its $3bn target.
But that didn’t happen. The absolute amount of the cryptocurrency bazaar was account about $215bn on September 26th – the day Bitmain filed its IPO application. Today, the absolute amount is afterpiece to $135bn.
Declining prices damaged the bread-and-butter activity of mining equipment, which is big-ticket to buy and run. As PoW cryptocurrencies plunged in value, so did appeal for Bitmain products.
Even in July – back BTC was account $6,300 – best miners could apprehend to make, at most, a $283 accumulation over a two-year period, as Crypto Briefing appear at the time. By the time BTC fell to its annual low of $3,200 in mid-December, allotment on advance were so low that abounding gave up on mining altogether.
In some ways, the aggregation dug its own grave. Bitcoin’s hashrate added clearly during the 2017 balderdash run, acknowledgment abundantly to the accumulation of bargain ASICs, as one chump accent on Twitter. Hash ante added and fabricated it harder to auspiciously abundance a block; the aggregation finer fabricated mining barren for all but a few above operations.
As the blueprint beneath shows, it was alone in November that hashrate dropped. This suggests that until that point, abounding miners were active at a accident in apprehension that prices would anon recover. Following the crypto wipeout, which ablaze addition $100bn from the market, abounding assuredly absitively to about-face off their equipment.
Even in backward September, back the cracks were alpha to show, abounding investors believed that the abatement was a cursory blip. There were alike signs of a accessible ‘bull breakout’ in aboriginal October.
Bitmain now finds itself in an unenviable position. Demand for its ASICs has now broiled up, and the company has warehouses abounding of unsold stock.
As a result, the aggregation had no added best than to put the IPO on ice. As HKEX’s advertisement rules state, a aggregation which has already submitted an appliance can restart it at any time, provided they accommodate abreast banking records.
That agency there’s a able achievability that Bitmain will restart its IPO aback the markets recover. The ample profits accrued in 2025 agency the aggregation should still accept a ample abundant war chest to acclimate the blow of the buck bazaar and get its abode aback into order.
Assuming, of course, that a bazaar accretion is on the way.
