Crypto-miner Bitmain confirms choice of Hong Kong for IPO
Bitmain, the cryptocurrency miner and maker of mining equipment, has chosen Hong Kong to launch its initial public (IPO) offering, the company confirmed on Wednesday.
The IPO comes at difficult time in the cryptocurrency sector and will be an important test of the resolve of crypto investors.
Indeed, as the market capitalisation of the entire cryptocurrency sector has dropped by fifth since the beginning of August, prices for mining gear have drifted lower too.
Rivals catch up
Rivals, meanwhile, have been catching up. Last month analysts at Sanford C Bernstein wrote that the “competitiveness of Bitmain’s chips is in question”, claiming that rivals Canaan Creative and Ebang International were bridging the gap.
And that’s not where the competition stops: both Canaan and Ebang will be challenging Bitmain for a slice of investor cash as both rivals are launching their own IPOs.
There have also been some concerns over Bitmain’s crypto holdings – particularly the 1m bitcoin cash tokens on its balance sheet, revealed in leaked documents in March. At the time of the leak, the BTC1m was worth nearly $700m and has since sunk more than 20%.
Yet, confirmation of the Hong Kong IPO, which has been suggested may aim to raise up to $18bn, has been responsible for a sharp rally in bitcoin cash prices.
Since the announcement bitcoin cash has risen by more than 20% to Thursday’s peak of $544.