Chief strategy officer of blockchain company Blockstream Samson Mow published documentation for potential investors of the largest manufacturer of mining equipment Bitmain. It turned out that the company sold most of its bitcoins and significantly increased its position on Bitcoin Cash.

Given the ongoing deep correction in the digital currency market, Bitmain could have lost nearly half a billion US dollars due to the decline of the BCH rate over the past three months. The documentation for possible IPO participants includes the average price of BCH – $869 (March 31). According to CoinMarketCap, as of 10: 27 UTC, on August 13, the average asset rate was $587.

Mow stressed that the upcoming IPO Bitmain is very risky for investors, as the company purchased BCH, without even knowing about the critical vulnerability in the protocol, which was discovered by Bitcoin Core developer Cory Fields.

Samson Mow also noted that potential investors were only shown the performance of the first quarter, when Bitmain’s profit had amounted to $1 billion. He believes that results of the second quarter are being concealed on purpose because of the significant losses as a result of increasing positions in Bitcoin Cash and drop of Antminer S9 price by 85%.

Mow estimates Bitmain’s potential losses in the second quarter at $600-$700 million. He says that if the price of bitcoin remains at current levels, the situation for the company will only get worse, because they have already ordered a huge batch of semiconductor materials from TSMC.

A little later, Mow wrote that there was a possibility that all profits for the first quarter had gone to cover the losses of the second.

A twitter user under the name Crypto Herpes Cat published an article in which he explained that, the company would not be able to get rid of BCH after March 31, because the market of this asset is illiquid, and OTC transactions are insignificant.

Holding a major IPO, in his opinion, is the only way for the company to improve its position at the expense of investors who should not find out that Bitmain’s assets in the current market situation are extremely illiquid.

Crypto Herpes Cat also suggested that Jihan Wu had seen opportunities in the cryptocurrency market in the near future, and that a new round of growth could begin in the run-up to the IPO.

A well-known crypto-enthusiast Whale Panda published the full documentation of the company for potential IPO participants. However, it is available only in Chinese.

Recall, Bitmain intends to raise $18 billion in the IPO on the Hong Kong stock exchange, after which the company’s capitalization can reach $40-$50 billion.