Bitcoin Mining Titan Bitmain Threatens Over Controversial IPO in Dicey Translations
Although unconfirmed, it seems that Bitmain has been threatening to “disappear” anyone who crosses them inside China.
Recently, the platform issued a prospectus before its IPO. Rather than be heralded as a success, the prospectus received lukewarm reviews and caused doubts about the viability of the platform over the long-term.
Ken Lu wrote in a report for Medium that investors should be concerned with several points. Particularly, Lu alleged that Bitmain represented net profits. As he stated, “ . . . misrepresenting this and to such a degree is nothing short of financial fraud.”
As for the prospectus, it discussed the company’s unsold hardware and its warehouse of unsold technology that were once the best on the market. However, new players have released their own technology and surpassed Bitmanis, particularly when it comes to mining efficiency.
One competitor, Pangolin, released the Whatsminer M10 ASIC Miner. Squire also released its own miner. The latter has 1.5 times more hashing capabilities and it consumes 50 percent less energy than some of Bitmain’s best ASIC miners. Interestingly enough, Pangolin’s miner was developed by former Bitmain technologist Yang Zouxing. Bitmain has unsuccessfully tried to replicate the success experienced with Zouxing, who was recognized for his progress with the chip design.
Bitmain’s inability to remedy the seeming corporate brain drain has put it in a precarious situation. Further, there are allegations that the company has attempted to defraud investors and are threatening competitors. Together, these actions are just troublesome.