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   339

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 Another Office

Bitmain is building "long-term, sustainable and scalable business" is their own way
14 January 2019   147

The Chinese mining company Bitmain has announced that it will close another of its overseas divisions - this time in Amsterdam.

A spokesman for the company in a conversation with CoinDesk confirmed that the office is still working, but the decision on its future fate has already been made.

According to LinkedIn, at least nine people are employees of Bitmain in the capital of the Netherlands and are working on its flagship mining pool, while the company did not outline the scope of the process.

As we build a long-term, sustainable and scalable business, we are making adjustments to our staff and operations. This includes the decision to close our Amsterdam and Israel offices. We are really focusing on things that are core to our mission and not things that are auxiliary. We will continue to hire the best talent from a diverse range of backgrounds. 

Bitmain Team

It became known in December about the closure of the Israeli unit of Bitmain, with more than 20 employees, . As a reason for this decision, the company cited a decline in the cryptocurrency market in 2018.

Another fact is that it was planned to invest $500M and hire 400 employees for US office.