Bitmain suffered $500m loss in quarter three of 2018

19 Feb, 2019
by Ryan Boltman
News
Bitmain suffered $500m loss in quarter three of 2018

Coindesk as reported that crypto mining hardware company Bitmain, lost roughly $500 million in the third quarter of 2018 due to the extended bear market.

Bitmain had recently applied for an Initial Public Offering with a valuation of around $18 billion. However 2018's extended bear market has had dramatic effects on the mining company, which according to Coindesk, reports that Bitmain reported $2.8 billion in revenues for the first nine months, and only $200 million in revenues for the third quarter of 2018. 

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

Bitmain first came under suspicion of a disappointing year when the company began laying off staff as well as closing down research centers across the world. The extended bear market which lasted the entire 2018 saw Bitmain struggle to maintain their sales numbers from the beginning of the year. Bitmain had announced in their IPO filing from September 2018, that the company held Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Dash, all of which suffered dramatic losses in price. This heavily affected the companies holding, essentially losing roughly $100 million in value.

The HKEx will be hesitant to approve the Bitmain application following volatility and uncertainty of the companies profits.

Read More: Update: Bitmain confirms layoffs, Bitcoin miners continue to pull out

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Read more about: Bitmain Jihan Wu

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