Bitmain May Lost $740M in Q3 2018

If this information will be confirmed, the future of the company and its plans to raise funds through an IPO are likely to be under great threat
05 December 2018   457

Bitmain, a leading manufacturer of equipment for Bitcoin mining, allegedly suffered a loss of $ 740 million in the 3rd quarter of this year. Moreover, in reality, these figures may turn out to be even higher, Bitcoinist reports.

Official reports from the Chinese giant regarding its financial results for the specified period have not yet been received, however, information that Bitmain suffered major losses is spread by Twitter-account BTCKING555.

So, on Tuesday, it posted a record that says about the “leak” of Bitmain financial data.

We got leak of Bitmain Q3 numbers! COMPLETE DISASTER. The company lost $740 Million including losses on inventory and bitcoin cash! And this is not accounting for hash war costs! Approached by an investor desperate to liquidate Bitmain shares at $1,5 bln valuation ! Thats almost 90 prc down-round from August! With massive losses, Bitmain has no resources to support BCH. Illiquid BCH falls further hitting Bitmain balance sheet. Suppliers cut off credit lines & buyers wary to purchase equipment. IPO Canceled. Only solution - significant down round and VCs take over? Interesting to see!
 

BTCKING555 at Twitter

If this information will be confirmed, the future of the company and its plans to raise funds through an IPO on the Hong Kong Stock Exchange are likely to be under great threat.

Earlier it was reported that in the run-up to IPO, Bitmain could misinform potential investors about the participation of DST Global and GIC Private Ltd. in the June round of financing for Series B. Within its framework, the company allegedly raised $ 400 million, after which its investment valuation, it was alleged, rose to $ 12 billion.

Bitmain filed an application for an IPO in September, and as BitMEX’s research department later concluded, the company, like other representatives of the cryptocurrency industry, remains vulnerable to the overall market conditions.

Bitmain to Close Norwegian Office

Main reason for this decision was the cancellation by the local authorities of special preferential conditions for the mining industry
18 March 2019   61

The Chinese manufacturer of mining equipment Bitmain announced the closure of the Norwegian division, according to ICOshock.

The office will be moved to Germany, where, according to representatives of Bitmain, the conditions are more favorable. The Scandinavian office of a Chinese company lasted only a year.

According to Julie Hvideberg, ex-manager of the Norwegian division of Bitmain, the main reason for this decision was the cancellation by the local authorities of special preferential conditions for the mining industry, including lower electricity tariffs. She also expressed the opinion that in the future the largest mining pools will be concentrated in China and Russia, where there is low-cost electricity.

Last year the problem with problems with regulators was faced by the Norwegian mining farm Kryptovault. Authorities and local residents considered the company too noisy.