Bitmain IPO uncertainty are “rumours”: Hong Kong Stock Exchange official
A spokesperson from the Hong Kong Stock Exchange (HKEX) has responded to the alleged claims of Bitmain’s, the cryptocurrency mining devices manufacturer, Initial Public Offering (IPO). According to a correspondence with Cointelegraph, the HKEX spokesperson set aside Bitmain’s purported hesitation as rumours.
“HKEX does not comment on rumours,” he said when asked if the stock exchange would not go through with the IPO as it was “hesitant” regarding the debilitating crypto mining business amidst the market freefall.
Unverified sources have alleged that, “The exchange is very hesitant to actually approve these bitcoin mining companies because the industry is so volatile. There’s a real risk that they could just not exist anymore in a year or two.”
The cryptocurrency mining business has been brought to its knees due to Bitcoin’s price slump over the past few months and miners are increasingly pulling out. During the brunt of the market fall in late November, miners in China were selling their devices by the “kilo” due to low mining returns on BTC prices.
Mao Shixing, the founder of the mining pool F2Pool published an infographic showing that if Bitcoin were to fall under $5,300, the Antminer T9 would be unprofitable and the Antiminer S7 would be unprofitable at $11,500 BTC price. At press time, Bitcoin is trading at $3,500 in a bullish market.
Due to the declining market conditions, Bitmain was forced to close its Israel development centre and let go of the employees recently. Furthermore, the mining giant was also the subject of a $5 million class-action lawsuit which claimed that cryptos mined using Bitmain’s devices were not mining for the owners but for the manufacturer during the initial period of ownership.
Bitmain’s IPO has been the center of several controversies over the past few months. Many companies have been allegedly involved in the IPO but they have since attested that they were not a part of it.
Temasek, the Singapore-based holding company was alleged to have invested $560 million in the mining device manufacturer. However, they responded, “We’ve seen commentary about an IPO involving a cryptocurrency company, Bitmain. Temasek is not an investor in Bitmain, and has never had discussions with, or an investment in Bitmain. News reports about our involvement in their IPO are false.”
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