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.

Bitmain Story 1: Realizing that financials and numbers collapsing, Jihan rushes a $260 mln deal in June (not $400 mln as reported) primarily driven by @Sequoia. The deal was done with limited DD and off Q1 numbers. Neil Shen – Sequoia partner is duped into believing all good

— BTCKING555 (@btcking555) September 10, 2018

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’.

Bitmain Story 2. As numbers continue to further collapse, Jihan rushes even more to put together a quick $1 bln pre-IPO round hoping to close before he discloses catastrophic Q2 numbers. CFO hwr makes mistake of putting 60 days vs 90!

— BTCKING555 (@btcking555) September 10, 2018

Bitmain Story 3: With 60 days elapsing since end of Q2 Bitmain now has to disclose its disaster Q2 numbers. Pre-IPO round is crumbling with investors asking moneys back or significant discount to $14 bln valuation Jihan on calls with investors but reputation tarnished #bitmainipo

— BTCKING555 (@btcking555) September 10, 2018

Bitmain Story 4: Investors pissed that deteriorating numbers not disclosed and that no big names invested (it was all rumours spread by Bitmain to FOMO!) No Softbank! No Tencent! No DST! No GIC! No Temasek! #BitmainIPO

— BTCKING555 (@btcking555) September 10, 2018

Bitmain Story 5: insider says contracts are made according to Hong Kong Law and several investors already looking to potentially bring lawsuits for material omission by CEO, CFO and @KPMG @HKEXGroup #bitmainipo MEANWHILE LETS SEE Q2 NUMBERS !

— BTCKING555 (@btcking555) September 10, 2018

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.