Bitmain Resurrects IPO Plans amidst Bitcoin Price Surge
Bitcoin mining behemoth, Bitmain, may likely revive its initial public offering (IPO) plans following bitcoin’s price surge. According to a Bloomberg report on Jun 21, 2019, the company this time around, would be making its filing in the United States instead of Hong Kong.
BTC Hike Unfreezes Bitmain IPO Plans
Anonymous sources have revealed that the Chinese mining chips manufacturing giant, Bitmain, is planning to unfreeze its IPO plans.
Bitmain had a tumultuous 2018 following bitcoin’s price crash in Q3 and the general bloodbath in the cryptocurrency market. This saw a massive decline in the supply of mining chips as many small time miners packed up. Following the price crash, the company closed down its office in Israel and reportedly laid off 50 percent of its workforce.
Things didn’t get better for the mining manufacturing company, as Hong Kong regulator declared that it wasn’t going to approve any IPOs until it was ready to provide a clear regulatory framework for the industry. The Bitmain situation came to a head when its IPO filing expired in March 2019.
But all that seems to be in the past, as bitcoin’s price surge has caused Bitmain to reconsider reviving its IPO plans. But this time around, the anonymous sources state that the company could share its sales in the U.S.
Furthermore, the sources claimed Bitmain would drastically reduce its stock sale target from $3 billion to about $500 million. This reduction relieves the troubles the company has endured since the middle of 2018.
An IPO filing with the U.S. Securities and Exchange Commission (SEC) would mean some of the highest levels of financial compliance. The company will have to provide detailed financial statements which may shed light on the extent to which the company’s bottom line tanked in 2018.
Bitcoin Price Continues Upward Trajectory
Reports of Bitmain reviving its IPO plans come at a period dominated by bullish sentiments in the cryptocurrency market. Bitcoin, ether, and litecoin, to mention a few, are enjoying significant positive runs.
Bitcoin finally crossed the $10,000 price mark and reached its highest market valuation in over 15 months. Litecoin has gained more than 350 percent since the start of the year with the price of ether also setting a new high for 2019.
On the whole, crypto miners should be experiencing a return of massive earnings. Bitmain will be looking to use the current market euphoria to its advantage in its quest to become the first publicly-traded cryptocurrency startup.