Controversial Bitmain IPO Is Responsible For 20% Spike In Bitcoin Cash (BCH) Price
Bitcoin Cash, over the last 24 hours, recorded a 20 percent increase in price, making it one of the best performing cryptocurrencies.
According to analysts, BCH’s price increase is due to Bitmain’s initial public offering registration with the Hong Kong Limited Stock Exchange.
A month or so ago, a company insider leaked to the public the company’s investor deck. The document discussed Bitmian’s holdings in various cryptocurrencies, including Ethereum, Bitcoin and Bitcoin cash.
The deck also disclosed that the company has held more than 1 million in Bitcoin Cash since December and it accounts for about 6 percent of the entire circulating supply of the cryptocurrency.
An analyst at Cobra stated,
“Bitmain holding 1M+ BCH is a very powerful statement that they have skin in the game and put their money where their mouth it. It’s a good and calculated move, and it’s not wise to underestimate them.”
It is also important to note that Bitmain’s 1 million BCH holdings led to controversy in the cryptocurrency sector as investors attributed the Bitmain IPO as a method to liquidate its holdings of Bitcoin Cash. This occurs even though it only represents about %540 million, which is less than 50 percent of the company’s quarter profit of $1.1 billion.
Bitcoin Cash investors have even started to speculate on Bitmain’s IPO and whether the conglomerate will be able to conduct its public offering of its equity. Recently, Bitmain released its IPO document that it had filed with the Hong Kong Limited Stock Exchange.
As eToro Senior Market Analyst Mati Greenspan stated to Forbes: “This spike was definitely caused by Bimain’s IPO filing.”
The document also showed that the company has a healthy balance sheet that emphasizes an impressive 74.5 percent market share over the cryptocurrency mining equipment manufacturing sector.
All of the aforementioned information may have led to a rise in confidence from investors. As Garon stated,
“It has been no secret that Bitmain holds massive amounts of BCH, but now that they are going public they are going to fill their already immense treasure chest with more money, and I’m confident a good chunk of it will go towards the development of BCH. Exciting times ahead for Roger and Jihan.”