New Bitmain IPO Drama: All is *NOT* Well with Leading Bitcoin Mining Company


All is Not Well With Bitmain.. Here’s What You Need to Know

Bitmain has been mired by a lot of controversy in recent weeks, starting with the company’s decision to launch its IPO sometime late-September— a move that has not been well received by the crypto community at large.

However, according to a “crypto insider” by the name of BTCKING555, there is much more than meets the eye when it comes to Bitmain and its current financial condition.

Via a tweet that was posted on September 10, BTCKING555 claimed that Bitmain’s financial status was depreciating rapidly within the crypto sector and in order to hide its faltering economic condition, Jihan Wu, the CEO of the organization, reportedly “rushed a $260 mln deal earlier this June”. He then went on to add that the numbers associated with this deal were purposely inflated by the firm (as being $400 Mln) so as to hide Bitmain’s dwindling fortunes.

The deal was primarily facilitated by Sequoia, an American venture capital firm, and was allegedly carried out based on Bitmain’s Q1 figures as well as without a lack of proper due diligence on behalf of all of the parties involved.

Other Associated Developments

Many investors have been questioning why Bitmain is not releasing its Q2 figures— even though 60 days have elapsed since the start of Q3. These questions have been further compounded by the fact that Bitmain’s executive team has been rushing to raise a quick $1 bln for its Pre-IPO round before Wu ‘reportedly’ decides to disclose the company’s ‘catastrophic Q2 numbers’.

Additionally, BTCKING555 also noted that a lot of investors are displeased with the fact that none of the big players that were allegedly investing in Bitmain’s IPO have yet to confirm these rumors. For example, earlier last month, Bitmain claimed that huge multinationals including Softbank, Tencent, DST and GIC had signed agreements with the firm— but as things stand, none of these stories seem to be carrying any substance to them.

From Bad To Worse

If insider sources are to be believed, the contracts drawn up by Bitmain have been devised as per existing laws in Hong Kong. As a result of this, many investors are already looking to bring lawsuits for material omission against some of the core parties involved in this case including Bitmain’s CEO, CFO and KPMG.

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