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   544

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 Reduce BTC Mining Hashrate by 88%

Total hashrate of Bitmain equipment used for mining on the SHA-256 is 237.29 PH\s; month ago it was 2072 PH/s
08 May 2019   239

The leading manufacturer of mining equipment Bitmain in the past 30 days has reduced the hashrate of bitcoin mining by 88%. This is evidenced by data reporting, which the company publishes monthly.

As of May 7, the total hashrate of the equipment used by Bitmain for mining cryptocurrencies on the SHA-256 algorithm (Bitcoin and Bitcoin Cash) is 237.29 PH/s.

Bitmain's Hashrate on Different Algorithms
Bitmain's Hashrate on Different Algorithms

At the same time, just a month ago, the volume of the respective capacities was 2072 PH/s.

Based in Beijing, Bitmain not only manufactures equipment that is popular among miners, but also mines cryptocurrency using its own resources. The company began to publish reports on the available mining facilities in July last year. At that time, the hashrate of SHA-256 equipment was 1692 PH/s.

By October 2018, the hashrate had risen to 2339 PH/s, but by March it had already dropped to 1700 PH/s. Against this background, the share of Bitmain's computational power in the total bitcoin hashrate decreased from 4% to 0.4%.

After the April BTC price recovery, the amount of computing power of Bitmain began to grow again. At the same time, the total hashrate of the first cryptocurrency network, which has updated the six-month maximum by the beginning of May, began to recover with confidence.