Bitmain’s Crypto Bags Revealed, is the Bitcoin Mining Giant in Trouble?

Bitmain’s Crypto Holdings Revealed, Holds Nearly 6% of All Bitcoin Cash [BCH]?

In a recent post published by TrustNodes, ASIC Miner, Bitmain’s crypto holdings have been revealed. The leaked analysis seems to have first been made available via an Asian platform and it looks at Bitmain’s holdings from as early as December 31, 2016 until March 31, 2018.

It seems that Bitmain holds five different cryptocurrencies, which include Bitcoin [BTC], Bitcoin Cash [BCH], Litecoin [LTC], DASH, and Ethereum [ETH]. One would assume that the ASIC Miner would hold large quantities of BTC as it is one of the leading pairs with majority of tokens to date. Surprisingly, as of March 31, 2018, Bitmain holds nearly 1 million BCH, 22,082 BTC, 930,932 LTC, 312,424 DASH, and a measly, 1,097 ETH.

Bitmain’s holdings have definitely slashed, as per the provided information. Their once 22,082 BTC is sitting at nearly 6,712 as of March 31, 2018. While the information is somewhat outdated, given that it is missing nearly five months’ worth of data, some details as to why Bitmain has one type of holding over another can be reasoned out.

The first argument made is that of Bitmain’s payment option. It could have required users to pay for its ASIC products in exchange for BCH. Another, obvious reason, could be their interest in mining BCH. Put together, this group of holding, as per TrustNodes, is equivalent to 6 percent of the entire BCH supply existing. Keep in mind, ever since Bitcoin Cash migrated on its own network, it was only successful in generating 700,000 more BCH.

Bitmain’s reduced BTC holdings can be due to several reasons. First, the giant is known for its scalability concerns, high transaction fees, and long wait times to get a block established. Second, it appears that majority of their BTC has been used for expenses, which is surprising considering its rather high transaction fees.

The rather low ETH quantities are highly correlated with the fact that it uses graphic processing units (GPU). Since Bitmain is a proud supporter of ASICs and does not generally believe that the former is superior in any way, its ETH holdings can simply reflect a faithful stance that it might one day reach its all-time high of 2017 (i.e. USD$1295).

As for their LTC and DASH holdings, it has been noted that Bitmain is more involved in mining these two cryptocurrencies compared to the rest.

Although one might argue that Bitmain remains most hopeful and strong on the potential BCH has in the near future, its filing for an Initial Public Offering (IPO) could become a changing factor. In particular, the team was allegedly successful with its $1 billion pre-IPO round, which took place in July 2018 and has raised 15 times more than its initial goal. The $18 billion IPO is scheduled for September 2018, making it one of the largest to date.

What are your thoughts on Bitmain’s current holdings? Do you think there is a particular reason why LTC and DASH holdings exceed over say, BTC and ETH?

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