Bitmain’s Bitcoin Holdings (BTC/BCH) are in the Spotlight as Pre-IPO Investors Dig into Latest Numbers

Criticisms Against Bitmain’s IPO Pile up as Critics Accuse the Company of not Making Q2 Results Public

Bitmain has plans of going public and reportedly trying to raise $18 billion USD on the Hong Kong Stock Exchange with a market cap ranging from $40-$50 billion. If successful in doing so, Bitmain’s IPO will become the biggest IPO in history. However, recently criticisms have started to pile up on the bitcoin mining giant. It is being calculated that Bitmain underwent a massive Bitcoin swap from BTC to BCH and now has over $570 million in Bitcoin Cash holdings which accounts for approximately 5% of all BCH in circulation.

Amongst the critics who are skeptical about the company’s IPO, Blockstream’s CSO Samson Mow has been leading the pack. Yesterday, he sent out a series of Tweets asking hard questions to Bitmain, concluding the thread by saying:

“The Bitmain IPO is incredibly risky for any investor to buy into. The potential for massive losses is just around the corner as they have no idea how to maintain BCH, but are all-in. Play stupid games, win stupid prizes.”

Today, he added more substance to his case against Bitmain.

Just by glancing at the graphs Samson shared you can easily estimate the losses of the company. The first graph shows that Bitmain is sitting on $1.34 billion USD in inventory. When you have over a billion dollars of inventory and price of the product goes down by 85%, it can be seen why Samson thinks Bitmain is hiding the Q2 results from the investors.

According to their Pre-IPO investor dock, they possess 1,021,316 BCH in which the average price they bought the Bitcoin Cash tokens was at $869. The rough math says that was rough $887 million at the time of purchase, and at today's price would be worth roughly $571 would be a loss of $320 million in just a single quarter this year. It is also being reported they own roughly 931,000 LTC and 312,000 DASH coins as well as close to 1,100 ETH.

Samson further adds, “If BTC prices stay same, Bitmain will continue bleeding as they went ALL IN ordering a massive amount of wafers from TSMC. You don’t become a top 5 global customer of TSMC with smaller orders. Pre-IPO investors should push them to disclose their Q2 numbers immediately.”

Parabolic Trav, a prominent Twitter user in cryptosphere, added to this conversation. Trav has been publicly critical of Bitmain’s IPO since they announced their plans.

Another Twitter user accused Jihan Wu, the co-founder of Bitmain for “clever bookkeeping.” He added, “My prayers go to the fools that will invest in this BCH meltdown cover-up scam.”

What do you guys think of this on going story about one of the biggest companies in the cryptocurrency space, Bitmain. Long thought of as one of the top 4 most valuable companies in all of bitcoin-related businesses (Coinbase, Binance, Upbit and Bitmain) is now being called into question due to recent moves and investments made since December 2017 til today. This story is definitely not finished as the pre-IPO drama will continue to unravel as it will surely pack a punch and light up some fireworks. Make sure you follow us to keep up with the latest unfoldings in what will be a very entertaining dialogue as the crypto community will continue to find anything and everything they can to both support as well as pick part one of the biggest bitcoin companies in the world, Bitmain.

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