Bitmain IPO Document Apparently Divulges $500 Million Loss in Q3

The world’s largest designer of application-specific integrated circuit (ASIC) chips for bitcoinmining, Bitmain suffered a loss of $500 million during Q3 2018. The updates are given away by Coindesk, an online media portal.

As per the information, Bitmain provided the latest reports on the financial results to the Hong Kong Stock Exchange (HKEx). The authority is responsible to review Bitmain’s application for an initial public offering (IPO) which the establishment for the expansion of the production of its hardware applied and already completed its $1 billion pre-IPO registration with the Hong Kong Stock Exchange last year in August, and subsequently, on September 26, 2018, filed for an IPO. The facts shown Bitmain not specified the dissection of the crypto assets. However, the company primarily possessed bitcoin, bitcoin cash, ethereum, litecoin, and dash.

Also Read: Bitcoin May Reach $50,000 by 2021, Says Chinese Bitcoin Billionaire

Bitmain Mining Pools and ASICs

The Chinese privately held mining hardware giant founded in 2013, by founders Jihan Wu, Micree Zhan, headquarters in Beijing, China. The crypto mine operator also operates two of the largest mining pools for bitcoin which are BTC.com and Antpool.

Reportedly, Bitmain showed an update of $500 million profit out of $3 billion in the revenue last year 2018, which is excluding Q4.

The updates are quite surprising and showing uneasiness on the uprightness of the ASIC firm in the market due to the earlier mentioned figures which have shown approx. $1 billion profit to the HKEx. The profits which formerly mentioned last time is straight away the half figures. Besides $500 million loss, the firm is also cutting down on the costs, laying off its 50% employees, bitcoin cash developers, and shutting down some of their mining operationswhich is indicated by various media outlets and source providers.

The Fall of Bitmain or Hypothesis

The mining Titan is undoubtedly facing an unclear fortune probably due to the bearish market trend of the last year which affected other mining firms along with it. The unquestionable ASIC mining hardware ruler is a well-known business house for its Antminer series of ASIC devices which is in loss because of the continued low price of the crypto asset and due to this the mining profitability that was earlier at peak during the late of 2017 and used to be sold out for higher prices now it is at all-time low.

Also Read: New Private City in Norway Adopts Crypto as Medium of Exchange

At present, S11, the latest Antminer devices are being sold for just $525. As per mining calculator coinwarz.com, using S11 for bitcoin mining and spending $0.10 per kilowatt for power denoting it would take 2,161 days or practically 6 years to break even.

This undoubtedly, a substantial loss which probably shows the bad outlook for Bitmain devices and approval from the HKEx because of the unfathomable and equivocal statements and updates considering profits. As per HKEx rule, Bitmain is required to provide the nine-month accurate figures at this time, which also says that listing applicants are not more than six months behind on reporting.

However, it is to note that Bitmain currently is still an actively operational functioning establishment. The orders are still acceptable for mining hardware, and purportedly, it is still possible to have company’s mining hardware running at one or more of their locations in or outside of China. The situation is almost the same for the entire industry and there would be many assumptions are yet to come.

Also Read: Amid JPMorgan Cryptocurrency Buzz, Signature Bank Claims to have Already Implemented a Private Blockchain