Samson Mow “Bitmain IPO ‘Looks Stupid'” and Top 10 Lies on Bitcoin Mining’s Leader


Bitmain IPO ‘Looks Stupid’ Says Samson Mow

Bitmain, one of the most important cryptocurrency mining companies in the market has decided to launch an IPO application. However, Pixelmatic CEO, Samson Mow, said that Bitmain’s HKEX Application ‘looks stupid.’

Bitmain has presented a filing for an Initial Public Offering (IPO) on the Stock Exchange of Hong Kong (HKEX). However, Samson Mow decided to analyze the application presented by the company and draw some conclusions about it.

The first point he marks is that Bitmain says that loss of user confidence in Bitcoin and other virtual currencies would clearly impact the business. That’s clear, Bitmain is a company that profits when the cryptocurrency market grows rather than when it falls. However, Bitmain has been supporting Bitcoin Cash (BCH), a hard fork of Bitcoin (BTC).

Because of this situation, the community was divided, and Bitcoin Cash stole an important market to Bitcoin and other virtual currencies. Mow says that if the company knew that a ‘loss of user confidence’ in Bitcoin could impact in a negative way the business they shouldn’t have supported Bitcoin Cash and its hard fork.

At the same time, Mow explains that Bitmain tried to hide their Q2 loss of 395 million dollars. This is something that has also been reported by BitMex Research, TechCrunch and the Twitter user @btcking555.

Mow says that Bitmain accounts for their cryptocurrency savings at the cost when they acquired them. This is very important because they do not value them at the fair market value. Indeed, part of their cryptocurrency balance sheet considers Bitcoin Cash at $2,000 dollars rather than $400-$500 as it is being traded now.

About it, Bitmain explained:

“We account for cryptocurrencies ar cost, instead of revaluing cryptocurrencies at their fair value on each accounting reference, to avoid substantial volatility in the value of cryptocurrencies from time to time, which may distort our results of operations and financial condition.”

Additionally, Mr. Mow explains that even when Bitmain would vale their cryptocurrencies at a fair market value, their balance sheets would still be inflated since Bitcoin Cash is highly illiquid. Mow says that Bitmain has 13% of the total supply of Bitcoin Cash on its power.

He explains that it would not be possible for Bitmain to sell even 5% of the currencies without affecting negatively the markets. At the moment, order books in many exchanges are very thin, something that would clearly not allow the company to sell the coins they have.

He then continues showing some issues with the 7nm ASIC chips presented by Bitmain some time ago. Mow says that the firm did not launch anything to the market, instead, it announced that it has the intention to do so in the near future. However, the market hasn’t seen a new 7nm chip from Bitmain in the last days.

The last thing he mentions is that Btimain did not even write correctly the word ‘Lightning’ to talk about the Lightning Network. The company instead wrote ‘Lightening.’

Finally, BTCKING555 says that Bitmain lied about the investors that were placing their funds on the company. The main intention behind it was to create FOMO (Fear of Missing Out) on the market.

Furthermore, he says that the second quarter was a disaster in financial terms. The company registered a net loss of $400 million dollars. Taking into account BCH losses, the exchange lost even more money.

Clearly, Bitmain has been involved in different controversies in the last months, something that could severely harm its position in the market. There are other companies that are starting to deploy their Bitcoin ASIC miners and increase their share of the market.

If it wants to continue participating in the crypto space, Bitmain will have to change several things related to its business strategy.

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