New Restrictions for Crypto Mining considered in Quebec

Quebec is to continue examining applications after a number of new rules and restrictions have been instituted
08 June 2018   716

After being well-known as a crypto miners` hotspot for several months, the Canadian province of Quebec poised the acceptance for any new crypto mining projects on Thursday, June 6. The province can start the approval of new mining projects after it has taken the necessary period to consider placing restrictions on their operations and increase electricity rates. Quebec Energy Minister Pierre Moreau in his report claimed that the new rules are aimed to welcome only “the best among the [crypto mining] companies” to the province; Hydro-Québec Distribution President Eric Filion affirmed that the restrictions are to defend Quebec citizens from having to pay higher rates for the electricity they use.

As reported by Reuters, Quebec government started the suspension when the state-owned Hydro Quebec power plant had demanded that the province confined the general amount of power available to all crypto miners in the region to 500 megawatts; 17,000 megawatts were required by crypto miners for their purposes.

Hydro Quebec has also begged Quebec’s energy board to regard placing a premium on energy sold to cryptocurrency miners in order to grow the province’s profits. Applications for the establishment of mining rigs in Quebec from companies in China and other countries have increased after many of the world’s governments ran  placing restrictions on the amounts of electricity that crypto miners are let for using. Quebec’s availability of (mostly) sustainably-produced, inexpensive electricity joined  with its political stability has made this region a very attractive for foreign miners.

The suspension announcement follows just a week after Quebec lifted a prohibition that prevented energy firms from supplying crypto-mining operations with any electricity. The province’s government was reportedly disquieted that the ban went too far, and suppressed the growth of the crypto industry in Canada.

Bitmain to File IPO Application

The application was sent to Hong Kong Stock Exchange (HKEX)
27 September 2018   405

The largest mining company Bitmain has submitted to the Hong Kong Stock Exchange (HKEX) listing application for an initial public offering (IPO), according to CoinDesk.

The application is a draft option, and some of its details, in particular the number of shares offered for sale and the immediate date of the IPO, are still in the process of editing.

Nevertheless, the document indicates that last year Bitmain's revenue was $ 2,517,719,000. This figure is higher than in 2016 ($ 277,612,000). As of June 30, 2018, the company's revenue was $ 2,845,467,000.

The application said that in 2017 the gross profit of the company was $ 1 212.7 million, which is also higher than in 2016 ($ 151,351,000).

Earlier, the head of Bitmain, Jihan Wu, expressed his indignation over the actions of the company's chief financial officer, who disclosed the figures for the first quarter 60 days after his end, and not after 90, as he had expected.

The media suggested that in the run-up to the IPO the publication of such information could have a negative effect on the company's investment attractiveness.

In addition, the document confirmed the media's information that Bitmain owns a 3% stake in Opera's Internet browser thanks to an investment of $ 50 million.

The application also indicates that the underwriters of the IPO are China International Capital Corporation Hong Kong Securities Limited, Commerce and Finance Law Offices, Maples and Calder LLP, KPMG and Frost & Sulliva