{"id":20405,"date":"2019-03-25T21:22:53","date_gmt":"2019-03-25T21:22:53","guid":{"rendered":"http:\/\/ci027cfe7840012697"},"modified":"2019-03-25T21:22:53","modified_gmt":"2019-03-25T21:22:53","slug":"bitmains-ipo-filing-has-expired","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/markets\/bitmains-ipo-filing-has-expired","title":{"rendered":"Bitmain\u2019s IPO Filing Has Expired"},"content":{"rendered":"
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Bitmain\u2019s long-anticipated initial public offering (IPO) filing with the Hong Kong Stock Exchange is officially a bust.<\/p>\n

The mining titan\u2019s IPO expired on Tuesday, March 26, 2019. Bitmain filed the application for its IPO on September 26, 2018, and the Hong Kong Stock Exchange had six months to decide whether to reject the filing, graduate it to a hearing stage or let it lapse.<\/p>\n

After half a year in limbo, the exchange\u2019s inaction means the filing has officially expired.<\/p>\n

\u201cBitmain\u2019s listing application to [the Hong Kong Stock Exchange] HKex in September 2018 has reached its [six]-month expiration date,\u201d according to a press release that Bitmain shared with Bitcoin Magazine<\/em>. \u201cWe do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value. We hope regulatory authorities, media, and the general public can be more inclusive to this young industry. We will restart the listing application work at an appropriate time in the future.\u201d<\/p>\n

Recent speculation surrounding the lofty IPO, which Bitmain reportedly hoped would raise a record $18 billion, assumed that the application would peter out as the deadline drew nearer without any indication that it would reach the next step in the filing process.<\/p>\n

The release continued to note that \u201cthe listing process has made the company more transparent and standardized.\ufffd\ufffd<\/p>\n

At the very least, it\u2019s brought the tenuous health of the mining firm\u2019s finances into the public light. And the state of these finances could be the very reason why the application never progressed past the filing phase.<\/p>\n

Despite earning roughly $700 million in 2017, Bitmain lost $400 million in Q2 of 2018, according to an IPO prospectus<\/a>. To make matters worse, the company reportedly lost some $500 million in Q3<\/a> of 2018 according to analysis<\/a> of a leaked and unconfirmed pre-IPO presentation (Bitmain denies this projected loss as a false rumor). This isn\u2019t surprising given the industry\u2019s multi-year bear market, which has stressed the profitability of mining and the sale of mining equipment. For instance, Bitmain\u2019s Antmine S9 used to sell for $5,000<\/a>. Now, it sells for just over $200.<\/p>\n

The company\u2019s decision to stack reserves of bitcoin cash could also be partly to blame for waning finances. According to an unconfirmed pre-IPO investor deck<\/a>, Bitmain held over 1 million BCH in March 2018 and it actively liquidated bitcoin in favor of the forked alternative. This information became public in August 2018 when BCH was valued at roughly $550 a coin, but following the Bitcoin SV chain split<\/a>, the coin is now worth about $160. So, holdings that used to be worth $550 million are now worth $160 million.<\/p>\n

Still, the press release Bitmain sent to Bitcoin Magazine<\/em> maintains an optimistic outlook. Alongside the IPO process reinforcing a sense of the company\u2019s transparency, this period of growth has given it time to focus on improving its hardware and chips for both crypto mining and AI, Bitmain claimed. It also led to a restructuring of its executive positions, including co-founder Jihan Wu splitting<\/a> a Bitmain board director position with fellow co-founder Micree Zhan.<\/p>\n

While Bitmain remains the world’s dominant mining outfit, some competitors are closing the gap. Canaan Creative, another Chinese mining hardware firm, for example, recently reached a valuation of $1 billion<\/a>. Still a far cry off from Bitmain\u2019s alleged valuation of $14 billion (a figure that dates back more than half a year and is likely less following its 2018 losses), the company’s sales have grown by a factor of three from 2015 to 2017. Even so, Canaan Creative\u2019s own IPO prospectus also expired after the six-month deliberation phase with the Hong Kong Stock Exchange, indicating that Bitmain has by no means lost its pole position.<\/p>\n","protected":false},"excerpt":{"rendered":"

Bitmain\u2019s long-anticipated initial public offering (IPO) filing with the Hong Kong Stock Exchange is officially a bust and the company plans to restart its listing application.<\/p>\n","protected":false},"author":3468,"featured_media":20406,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[34],"tags":[825,197,348,2799,1902,3428],"class_list":["post-20405","post","type-post","status-publish","format-standard","has-post-thumbnail","category-markets","tag-antminer","tag-bitmain","tag-hong-kong","tag-ipo","tag-jihan-wu","tag-micree-zhan"],"author_data":{"id":3468,"name":"Aaron Van Wirdum And Colin Harper","nicename":"aaron-van-wirdum-and-colin-harper","avatar_url":"https:\/\/secure.gravatar.com\/avatar\/88b6c65a7515990786b1c04473e15469e5b0d0fffef947ed629a60854e1cb426?s=96&d=robohash&r=g"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/bitmains-ipo-filing-has-expired.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/20405","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/3468"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=20405"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/20405\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/20406"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=20405"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=20405"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=20405"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}