A Hong Kong based stock exchange namely ‘HKEX’ representative has called Bitmain’s alleged hesitation around a claimed IPO [initial public offering] “rumors.” When asked for verification and further more details on the crypto mining firm’s initial public offering standing, the representative responded that “HKEX exchange doesn’t respond to rumors.”
Blockchain and crypto media had antecedently rumored that the exchange was “hesitant” to host its IPO as of market conditions surrounding the general crypto mining business. Anonymous sources have reportedly claimed that “the exchange is extremely hesitant to really approve these Bitcoin [BTC] mining firms as the industry’s so volatile. There’s a true risk that they may simply not exist anymore via in a year or two.”
The slump in crypto markets that followed 2017’s record highs has been tough to bear for several crypto mining companies. Some have reportedly begun ‘selling-off‘ mining hardwares that reached its “shutdown price” by the weight [in kilogram’s]. Citing market conditions, Bitmain has ‘closed‘ its Israel-based development center and even fired its native staff.
The potential Bitmain IPO has been the topic of some conflict and confusion over the course of the past few months. Many corporations that were alleged to be investors within the firm’s pre-IPO have stated that they aren’t involved in these allegations.
As reported earlier in Sep, Singapore-based firm Temasek was purported to have committed $560 Mlns to Bitmain’s initial offering. Temasek aforesaid in an official press statement stating:
“We’ve seen statement regarding an initial offering involving a cryptocurrency company, Bitmain. Temasek isn’t an investor in Bitmain, and has never had discussions with, or an investment in Bitmain. News reports regarding our involvement in their initial offering are false.”
Even in August, Henry Yu who is a Hong Kong advocate and legal expert said that a Bitmain investors deck in Chinese used obscure and deceptive wordings when listing investors prior to its reported initial offering. Within the Bitmain pre-IPO investors, DST global is listed as an investor, with claims that the investment was “recently completed.”
However, DST global confirmed that it “has had never endowed in Bitmain.” the major Uber stockholder, SoftBank, has additionally denied its alleged involvement within any offering.
Earlier in Nov., a news broke that Bitmain is facing a $5 Mln class-action case for allegedly mining cryptocurrency for its own profits on its customers’ devices. Gor Gevorkyan, the lead litigant, advised that the protracted “initialization” method of the ASICs sold by Bitmain has the hardware mining at full power at users’ expense.