Plans for blockbuster cryptocurrency IPO shelved amid bitcoin droop
Bitmain Applied sciences stated on March 26 it has allowed its IPO utility to lapse, six months after it was initially filed in September aiming to lift as much as $Three billion, based on Bloomberg Information.
Underneath Hong Kong’s itemizing guidelines, functions expire half a 12 months after submitting.
“We do acknowledge that regardless of the large potential of the cryptocurrency and blockchain trade, it stays a comparatively younger trade which is proving its worth,” the Beijing-based firm stated on its weblog on March 26.
“The bear market on the finish of 2018 introduced each challenges and alternatives that Bitmain will work exhausting at addressing in 2019,” it stated, including it could restart its utility “at an acceptable time sooner or later”.
Bitcoin skilled astonishing progress in 2017 to peak at a file $19,500 by the top of that 12 months.
However traders feared a speculative bubble and it has since crashed to face at about $3,980 per unit following months of risky buying and selling.
The digital bubble burst — adopted by what has change into the worst droop in years — has made mining operations virtually unprofitable.
Bitmain’s co-founders Micree Zhan and Jihan Wu grew to become the richest cryptocurrency billionaires to look on a listing by Hurun Report final 12 months of China’s wealthiest individuals.
The entrepreneurs have stepped down from their roles as CEOs and had been changed by Haichao Wang, the assertion stated, however it added the pair would proceed to information the corporate’s strategic improvement as administrators.
Along with a management reshuffle, the announcement additionally alluded to layoffs made on the finish of final 12 months and described them as “a tough however essential choice”.
It didn’t say what number of staff had been affected. Different producers have confronted comparable hurdles lately. Bitmain’s rival Canaan noticed its itemizing utility expire in November.
Mining chip maker Ebang continues to be pursuing a Hong Kong IPO after refiling its utility in December.