Bitmain recently released the specifications for its ‘profitable’ Antminer S17 series but overall things don’t seem to be going well for the world’s largest manufacturer of application-specific integrated circuit (ASIC) chips for Bitcoin mining.
A Twitter user with pseudonym Btcking555 shares information about the Bitmain whose bio reads, “Bitmain IPO is a fraud, DM me with more leaks. Reward with BTC.” He shared that Bitmain is “out of cash” which is no surprise as back in December when it fired 80 percent of its workforce that has been already speculated that the was probably running out cash.
Wrapped up mainland trip. Latest news Bitmain is out of cash and is desperately trying to raise capital to fund TSMC wafers. Yield is not good -below 80%. Existing investors asking for significant valuation discount or force them to sell BCH portfolio. Regardless they are screwed
— BTCKING555 (@btcking555) April 8, 2019
This situation would be bad for Bitcoin Cash (BCH) as per the leaked financial document that surfaced last year in August, Bitmain held over a million BCH. The company also has huge amounts of Bitcoin, Ethereum, Litecoin, and Dash. The chances of dumping Bitcoin are pretty low because the leading cryptocurrency has a promising future.
With a market cap of $5.3 billion, at the time of writing, Bitcoin Cash (BCH) has been trading at $300 with 24-hours loss of 0.39 percent, as per Coinmarketcap. Currently, it is down over 92 percent from its all-time high of around $3,780.
If as a last resort Bitmain starts selling its huge piles of Bitcoin Cash, it would certainly have a negative effect on BCH prices.
— Jonny Moe (@JonnyMoeTrades) April 8, 2019
Just at the end of last month, it has been revealed that the company has let its application for a Hong Kong initial public offering (IOP) lapse which has been aiming for about $3 billion. Smaller crypto mining equipment maker Canaan had let its IPO application lapse last year.
This has been Bitmain’s attempt to get over its grievous situation after cryptocurrencies tanked last year. At that time the company had stated that they will “restart” the application listing at an “appropriate time in the future.” The website further read that they see the crypto and blockchain industry relatively young to prove its value though it has “huge potential”.
At that time only, Haichao Wang, who previously worked in the capacity of director of product engineering, had been named the new CEO of the company. Wang replaced Jihan Wu, who would continue to works as a director.