Cryptocurrency prices plunged over the long run after an initial boom in the prices in late 2017. Bitcoin prices fell from the level of $19891.0 (Day’s high on 17th December 2017) to the level of $3216.1 (Day’s low on 15th December 2018). The darkest year for the bitcoin prices raised fear among the cryptocurrency investors about the future of the currency in the global market. The deterioration in the Cryptocurrency prices knocked out many retail investors from the market and jolted many stakeholders such as Crypto-Exchanges, Crypto-start-ups, Crypto-technology providers, etc.
One such jolt struck the Beijing based Bitmain Technologies. The Chinese company decided to raise fund through an Initial Public Offering (IPO) and filed to list its shares on Hong Kong in late 2018, which potentially marked the world’s largest cryptocurrency initial public offering. In its prospectus, the company detailed three years of tremendous growth, with revenue surging nine times to $2.84 billion, in the six months to the end of June 2018, but the bitcoin-mining equipment maker decided to knock the market doors for the capital, even after the phenomenal growth in the company.
The IPO of the company is delayed until now since the company decided to raise funds from an IPO amid continuous fall in the Bitcoin prices from its peak in December 2017. The company which makes the mining kit sought almost $3 billion from the primary market according to the bankers and underwriters of the IPO.
The current prices of bitcoin make it hard for the company to impress investors in the primary market as the energy requirements for the bitcoin mining will cost more than the current prices of the bitcoin in the market. As retail investors are out of the equation from the drastic fall in bitcoin prices, the company is relying on private investors to raise the desired capital. However, the discrepancy between the financials shown on the prospects and actual numbers crunched by the private lenders and investors ignited further concerns for the company.
Another factor which looms the company is its’ own cryptocurrency holdings: in addition to selling the bitcoin mining equipment, Bitmain holds significant cryptocurrencies in its portfolio. The holding includes both bitcoin and ethereum, which is currently trading significantly below the boomed prices of late 2017 and early days of 2018.
As per the underwriters and bankers of the shares, it is highly unlikely for the listing to take place and under the Hong Kong Listing Rules, filling expires after six months but can be renewed. As per the media sources, the Bitmain’s application for the listing is set to lapse this week, and the company is yet to pull out its investor’s presentation.
Not just Bitmain listing is about to get lapse, many other crypto-miners such as Canaan, Ebang’s listing had lapsed in Hong Kong.
The re-application of these lapsed listings might appear once the scenario of cryptocurrency changes and prices once again reach the sky.
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