The Bitmain company plans to hold an initial public offering (IPO) in September and raise up to $18 billion. However, some experts consider this plan unrealistic and predict its failure.
The major financial media resource of China Caijing believes that the IPO will not be successful. According to the publication, all the signs indicate that Bitmain plans will remain unrealized. The mining company incurs significant losses in the second quarter of this year.
However, this is not the only reason for poor forecasts. Last week, it became known that some Bitmain development teams are leaving the company, and one of the groups even attracts capital to compete with the mining giant.
Bitmain also failed to obtain patents for the technology. The company earlier sued Bitewei (ShenMa), seeking to prevent the launch of a competing company. However, the Chinese patent office came to the conclusion that the manufacturer of mining equipment uses public knowledge, which means that the patent is not put to them.
WHY IS IT IMPORTANT?
- According to the company's forecasts, after the IPO, the total value of the company may amount to $40-50 billion. However, Bitmain has come up with bad times. Analysts criticized the company because of the sale of most bitcoin assets to bitcoin cash, which resulted in a financial damage due to a drop in the value of BCH (Bitcoin.Cash).
- Developers of S7/S9 miners, which, according to some experts, helped Bitmain survive in the bearish market, left their posts. They intend to create their own competitive product.
- Earlier in August, Bitmain, after closing of the pre-IPO, reached a capitalization of $15 billion. The shares of Bitmain were invested by the co-owners of Japanese Softbank and Tencent.