Bitmain Investors Are Preparing a Lawsuit Against The Company
Main page News, Mining, IPO

User BTCKING555, known for being a public critic of Bitmain, has reported on his Twitter account that the company's investors are preparing a class action lawsuit in Hong Kong. They want to recover their investments after the expiration of the company's IPO application.

According to BTCKING555, Bitmain has not filed for bankruptcy just because it managed to raise $700 million during the summer of 2018. However, investors expected the company's IPO to boost the value of their investments, which has not happened yet basically because the company has not gone public.

Samson Mow, Blockstream's director of strategy, states that Bitmain owes a lot of money to its contractors and suppliers. In order to cover part of these costs, the company is selling the Antminer S15 mining device with losses.

Bitmain has recently confirmed that its application to go public on the Hong Kong Stock Exchange (HKEx) has expired. However, it has also reported that it plans to submit its IPO application.

The firm has also announced changes in its management body:

"As part of our new operating model, Haichao Wang has been appointed as CEO of the firm. Micree Zhan and Jihan Wu, co-founders of Bitmain, will continue to serve as directors to guide the company's strategic development."

Moreover, Bitmain has reported that it will "focus" on chips for the crypto and AI industries as well as on their related products and services.

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