Bitmain to Plan to Raise $3B Thru IPO

This reported by Bloomberg refering to "people with knowledge of the matter"
15 August 2018   542

The largest manufacturer of mining equipment Bitmain will submit a listing application to the Hong Kong Stock Exchange in September. The company plans to raise $ 3 billion during the IPO, according to Bloomberg, citing informed sources.

It is noteworthy that Cihan Wu intends to expand the range of the company's activities and bring it to the market of artificial intelligence. It should be noted that many representatives of the crypto-currency community refer to these plans with a share of skepticism.

CoinDesk argue that Bitmain intends to raise $ 18 billion, surpassing the IPO of the Facebook. In this case, the capitalization of the mining giant can range from $ 40 billion to $ 50 billion.

It also became known that the company received serious position on Bitcoin Cash, probably due to the sale of bitcoins. A number of industry experts believe that in the second quarter of 2018 Bitmain suffered huge losses.

It is worth noting that competitors of the giant Canaan Creative and Ebang can also enter the IPO in Hong Kong.

HKEX to Hesitate with Bitmain IPO Application Approval

Watchdog is very careful due to unfavorable situation in the market
17 December 2018   72

The Hong Kong Stock Exchange (HKEX) is in no hurry to approve applications for initial public offering (IPO) from leading Chinese cryptocurrency companies due to an unfavorable situation in the market, CoinDesk reports.

For the year, Canaan Creative, Ebang and Bitmain, the mining equipment manufacturers, submitted applications for IPO.

The exchange is very hesitant to actually approve these bitcoin mining companies because the industry is so volatile. There’s a real risk that they could just not exist anymore in a year or two. The HKEX doesn’t want to be the first exchange in the world to approve this and have one die on them. 

Anonimous Source of Coindesk

IPO applications must be approved by HKEX and the Securities and Futures Commission (SFC). After they are allowed to be considered at the hearings on listing, which, in particular, determines the nominal stock price and the volume of their offer. If the applicant does not appear at the hearing after six months from the date of application, the application expires. Within three months, the initiator of the IPO can recover the application that was withdrawn from consideration.

As previously reported, in November, the Canaan Creative application expired. Ebang has two more weeks so that HKEX does not freeze the request, and Bitmain has three months.

Right now, I don’t think that any of them could make it to the listing hearing. If either one doesn’t approve it, you can’t make it to the listing hearing.

Anonimous Source of Coindesk

HKEX also pays special attention to financial statements and cryptocurrency savings of companies. According to the source CoinDesk, the exchange carefully ensures that the initiators of the IPO regularly disclose information about the losses.

Note, according to Bitcoinist, the losses of the mining company Bitmain in the third quarter of 2018 were estimated at $ 740 million.

Meanwhile, a Twitter account BTCKING555 published information that Bitmain's cryptocurrency savings had decreased to $ 80 million.

However, CoinDesk sources also added that, perhaps, HKEX simply delays approval of applications due to uncertainty.