Vague Claims from the Bitmain Pre-IPO Investor Deck Are Adding Up
Bitmain Investor Deck – Vague and Misleading Statements
Chinese mining giant Bitmain Technologies is getting ready for its IPO and rumor has it that the least of investors is potentially misleading. Cointelegraph discussed the matter with Henry Wu, an attorney and legal expert at Chinese law firm L&Y. Wu explained that Bitmain’s original list is vague and though the language could refer to a layperson or an uninitiated potential investor, the language also suggests that Bitmain received funds from DST Global.
DST Global, however, stated that it “can confirm that DST has never invested in Bitmain.” There may be a reason for Bitmain’s misleading statements. Wu stated that if an investor relied upon Bitmain’s list of investors, they may be more likely to contribute their own funds or compel them to ask for reimbursement. Bitmain seemed to ignore the likelihood that if it refuses reimbursement, investors may instigate legal proceedings.
Bitmain’s pre-IPO funding round closed earlier this week and the platform claimed that several high-end investors were affiliated with it. For example, the platform also claimed participation by Japna’s Soft Bank, which owns a 15 percent stake in Uber. However, SoftBank spokesperson responded that “neither the SoftBank Group Corp. nor the SoftBank Vision Fund were in any way involved in the deal.” Bitmain has yet to report second quarter profits, which brings into question the company’s financial status.
“Why is Bitmain raising capital so fast & only showing Q1 results to pre-IPO investors? We’re well into Q3 now. The reason is Q2 was a disaster. Bitmain is sitting on a massive $1.24 billion USD in inventory & S9 prices dropped by ~85%! Q2 losses range in the $600-700 millions.”