Ahead of $18 billion IPO, Bitmain continues to lose money and technical edge

28 Aug, 2018
by David Robb
News
Ahead of $18 billion IPO, Bitmain continues to lose money and technical edge

After seeing remarkable revenue figures for 2017 and the first quarter of this year, crypto mining giant Bitmain has run into trouble and faced various controversies of late. Chinese financial publication Caijing has recently published an in-depth piece on its failings.

As reported before, one of the main reasons that Bitmain is now struggling is the quality of its mining hardware. The company lost the core tech team that was behind its most successful products, the S7 and the S9, which were the key to it surviving a two-year bear market and then capturing such a huge market share in the bull run of 2017.

The last few ranges of processing chips that it tried to roll out failed, and progress on the successful ones was relatively minimal compared to what went before, not to mention competitors' offerings. Patents on its hardware have also now been rendered invalid.

Bitmain has apparently suffered major losses for Q2 of 2018, and after apparently raising $1 billion in a pre-IPO funding round, is now dealing with several major investors who jumping ship and even denying involvement. The proposed $18 billion IPO was to be the largest in history.

Read more: Bitmain sets $18 billion IPO, following $1bn. pre-IPO roundTencent follows SoftBank by denying involvement in Bitmain Pre-ICOIs Bitmain losing its edge?


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