Bitcoin Mining Kingpin Bitmain Could Be Losing Ground Says Bernstein & Co
Bitmain Technology Is Losing Technological Edge
Sanford C Bernstein & Co., a research division, announced that Bitmain Technologies Ltd., a designer of cryptocurrency mining chips in the throes of planning an IPO, may be losing its technological edge.
The report discussed Bitmain’s struggle in managing against rival mining gear companies. The report also noted that producers of chips for Bitmain’s technology should secure their contracts by requesting that Bitmain make full prepayments and refrain from adding capacity solely for crypto-related demand.
Though the report did praise Bitmain’s performance last year as a “wild success” and touched upon the platform’s control of an estimated 85 percent of the market for cryptocurrency mining chip, it also pressed upon the issue of growing competition. Other players, such as Canaan Inc. and Ebang International Holdings, are also pursuing IPOs.
Bitmain is attempting to hold onto its status by planning a Hong Kong IPO, which has the potential to raise as much as $3 billion. Oddly enough, there are signs that Bitmain is misrepresenting the investors in the IPO, which may be a sign of financial trouble. Bitmain has also been acquiring a large amount of Bitcoin Cash, which poses a significant risk as Bitcoin’s offshoot value declines.