As you may have heard already, Bitmain, the largest cryptocurrency rig manufacturer in the world, has been trying to launch its Initial Public Offering (IPO) to go public and become a part of the Hong Kong Stock Exchange (HKEX). However, it looks like the company may have hit a bump on the road.
The stock exchange has addressed Bitmain’s listings, according to the South China Morning Post, and the company seemed pretty skeptical of Bitmain.
HKEX CEO Charles Li Xiojia has spoken at the World Economic Forum in Davos, Switzerland, today and he said that the better IPO candidates were the most consistent ones, a quality that he did not seem to find in Bitmain’s fillings. He did talk about any specific company at the forum, but all the top three mining companies, Bitmain, Canaan and Ebang have filed and people knew he was talking about them.
According to the CEO, the companies lack stability. He said if you make a billion dollars with one business and then say that you will do other things without showing actual past performance, then the company has probably realized that its first business was simply not sustainable in the future.
He seemed concerned that the companies will not be able to get the same success in the future as they had in the past because they cannot adapt to the new market in which the regulators are looking more at what they are doing and their profits plummeted.
When the CEO talked about going from one business model to another, he was probably talking about the fact that all of the crypto mining companies are not trying to get into the artificial intelligence industry because their mining equipment is failing to sell well.
This may have crushed Bitmain’s dream to have its own IPO, unfortunately, and Coindesk has found a tip of that. According to the crypto media outlet, a person involved in the talks told Coindesk that the HKEX was very concerned about approving Bitmain as the industry was simply too volatile and risky for investors.
If the failure is real, this will be a huge blow for Bitmain. The company rose as one of the most important crypto companies at the end of 2018 and the first Chinese unicorn of the crypto industry but its second half of the year was completely focused on the IPO. If the IPO doesn’t happen, Bitmain will have nothing else to fall on as it faces the harsh reality of the prolonged bear market.
Ebang And Canaan
The situation for Ebang and Canaan is not slightly better than the one being lived by Bitmain. Both companies are also very unlikely to be approved right now. Ebang has refiled its application last month and it is seeing a significant decrease in revenue at the end of 2018.
Canaan has almost given up to be in Hong Kong and plans to consider an IPO in the U. S., possibly on the New York Stock Exchange.