BitMEX research unit has published a report stating that Bitmain,a Bitcoin miner maker will become “legendary” on improving skill management. This report got initially leaked on the popular social media platform, Twitter in the initial phase of this week. Finally, BitMEX on its official blog page published the analysed report on this significant mining company based in China, Bitmain on 30th August.
The research study points out an intriguing factor present in the leaked documents of pre-Initial Public Offering [IPO] and that is the business of the Bitmain has witnessed a steep downfall. In 2016, the percentage of mining activity was ranged at 18.4% and on the contrary, 2018’s first quarter shows the percentage of revenue generated to be 3.3%.
The report suggests that the primary reason for the company to incur a loss is channelising and investing its majority capital to acquire Bitcoin Cash [BCH] in 2017. The analysed report has given an estimate of the market loss to be around $328 million. Disregarding the rumours linked with the IPO of Bitmain, BitMEX has specifically mentioned that the miner company “is likely to be the largest and most profitable company in the blockchain space, which is likely to make the company attractive to many investors”.
The leaked report has made BitMEX aware of the pre-round of the mining firm that raised nearly $14 billion, making them assume that at the IPO level, $20 billion or more can be easily raised. Bitmain, in the crypto market space, still holds the most significant position as a mining equipment manufacturer. BitMEX happens to be the leading firm in ASIC design and also in the distribution of mining machine. It is also the owner of the biggest mining pools, namely, Antpool and BTC.com.
However, BitMEX is optimistic about the future of Bitmain which it expressed in the conclusion, “Bitmain can be a legendary crypto company, generating strong shareholder returns for decades to come, but in order to achieve this (and it’s a lot harder than it sounds) the Bitmain management team may need to improve their management of company resources. Once the company goes public, capital allocation decisions in this volatile and unpredictable market will be difficult enough, letting emotions impact too many investment decisions may not be tolerated.”
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