Bitmain US IPO is on Pause Due to DOJ Investigation of Mining Equipment Sales via Unconfirmed Report

  • Bitmain might not go forward with its US IPO, its competitor Canaan didn’t have much success either
  • The company also terminated its agreement with Texas mining which was supposed to be “the world’s largest for Bitcoin mining”
  • Bitmain is also cutting down its staff ahead of BTC halving, the former executive called this a “suicidal” move

Bitmain’s troubles aren’t showing any signs of slowing down. The latest one came in the form of its US IPO. A critic of cryptocurrency mining giant Bitmain, Twitter user BTCKING555 said that the company is canceling its USA IPO plans.

Apparently, there is an investigation going on into Bitmain selling a huge amount of mining equipment to the Ponzi scheme BitClub. The company that promoted itself as “the most transparent company in the history of the world,” according to the NYTimes, 5 people were charged in New Jersey in this $722 million cryptocurrency Ponzi last month.

It isn’t surprising given that Bitmain competitor Canaan even after slashing its initial IPO target by 75% still falls short of reaching $100 million. Its shares also lost 43% of value in less than a month of its launch. The BitMEX report says,

“Canaan has been recording five consecutive quarterly losses and is further expected to generate a significant loss in 2019.”

“The world’s largest for Bitcoin mining” Farm already Down

Just last week, Bitmain terminated its management agreement with its Texas mining farm last week. The Vancouver-based DMG Blockchain said the mining farm has already 15,000 “next generation” miners installed but failed to materialize the “cost and operational efficiencies” which has been the reason for its termination.

Launched in Oct. last year, the company claimed the new farm would be “the world’s largest for Bitcoin mining” with a capacity of more than 300 MV.

Cutting Down Staff Ahead of Bitcoin Halving

There have also been reports that the BTC mining hardware manufacturer is cutting half of its staff ahead of having after the reports of disgruntled employees’ protesting emerged online. With the Chinese New Year coming, January 25, the timing couldn’t have been worse. Primitive Crypto founding partner Dovey Wan tweeted,

Former CEO says the Move is “Suicidal”

While the company is getting ready to reinvent itself for the new year by cutting out its workforce, former CEO Micree Zhan called this move “suicidal.”

Zhan who was ousted from Bitmain last year and is currently engaged in legal proceedings in an attempt to regain control of the company, said in a social media post that he is “firmly opposed” to the decision.

The action, according to him is “unreasonable” because “Bitmain’s cash flow is healthy, and there are huge amounts of virtual currency assets.” He believes the company can hold onto its 1300 employees.

The potential layoffs already started last month with Bitcoin halving, scheduled for May 2020, as the main driver behind this move.

Get Free Email Updates!

*Action* Enter Best Email to Get Trending Crypto News & Bitcoin Market Updates

I will never give away, trade or sell your email address. You can unsubscribe at any time.

AnTy
AnTy
AnTy has been involved in the crypto space full-time for over two years now. Before her blockchain beginnings, she worked with the NGO, Doctor Without Borders as a fundraiser and since then exploring, reading, and creating for different industry segments.

[Alert] Use the author's self-conducted information at your own risk, do you own research, never invest more than you are willing to lose.

[Disclosure] The published news and content on BitcoinExchangeGuide should never be used or taken as financial investment advice. Understand trading cryptocurrencies is a very high-risk activity which can result in significant losses. Editorial Policy \\ Investment Disclaimer

LEAVE A REPLY

Please enter your comment!
Please enter your name here

3,468FansLike
2,795FollowersFollow
4,233FollowersFollow

Live Bitcoin Price & Latest BTC Charts

Today's Latest Crypto News

Deregulating Bitcoin May Increase Speculative Trading Instead of Technical Innovation: Japan’s New Top Financial Regulator

Ryozo Himino, the new top financial regulator of Japan, wants the country to take caution over promoting digital assets, arguing that instead of promoting...

Goldman Sachs New Digital Asset Manager Reveals Plans to Bring A ‘Digital Token' to the Bank

U.S. financial giant Goldman Sachs is pushing forward its plans to launch a digital asset with the appointment of its new digital asset...

Grayscale Ethereum Trust Files with SEC to Halve the ETHE Locking Period Same as GBTC

Grayscale Investments has publicly filed a registration statement on Form 10 with the US Securities and Exchange Commission (SEC) on behalf of its Ethereum...

Florida Teenager Behind the Infamous Crypto Twitter Hack Pleads Not Guilty to 30 Counts of Fraud

Graham Ivan Clark, the 17-year old Florida teenager accused of being the main culprit of the most significant privacy breach in Twitter’s history, has...

Bitmain’s Management Feud Is Finally Affecting Business Operations; AntMiners Shipments Delayed

Bitmain’s top-level struggles cause a three-month delay in Antminer hardware. Two mutually exclusive solutions offered to customers. The constant wrangling within the largest Bitcoin...

BitcoinExchangeGuide is a hyper-active daily crypto news portal with care in cultivating the cryptocurrency culture with community contributors who help rewrite the bold future of blockchain finance. Subscribe on Google News, see the mission, authors, editorial links policy, investment disclaimer, privacy policy. Got News? Contact us, we are human too. Note: nothing here is financial advice, do your own research thoroughly.

Start Using Crypto Today