Cryptocurrency mining giant Bitmain has allowed its IPO application in Hong Kong to expire after its 6-month due date.

2017 was a very great year for cryptocurrency mining companies as Bitcoin and other virtual currencies reached all-time highs. A virtual gold rush began as individual miners were essentially pushed out by large firms. Founded in 2013, Bitmain rode the crypto wave to tremendous success. The company became the largest manufacturer of crypto mining chips in the world, and it planned on expanding. However, the downturn in the crypto market has impacted such goals, and the company recently announced it was letting its IPO application in Hong Kong lapse.

Bitmain Sought $3 Billion IPO

Bitmain had an impressive goal of raising as much as $3 billion through its IPO. However, investors were scared off due to the unrelenting bear market that saw cryptocurrency values drop as much as 80 percent (or even more).

Our focus for 2019, and first-hand information on some recent rumors and news about us: https://t.co/deOnJsHF4i — BITMAIN [Not giving away ETH] (@BITMAINtech) March 26, 2019

The manufacturer has decided to let its IPO application lapse and regroup for the future. In a blog post, Bitmain states:

Bitmain’s listing application to HKex in September 2018 has reached its 6-month expiration date. We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value. We hope regulatory authorities, media, and the general public can be more inclusive to this young industry. We will restart the listing application work at an appropriate time in the future.

Facing Several Challenges

The last six months have been challenging for Bitmain, as well as for other cryptocurrency-focused businesses. The company laid off employees last year just a few days before Christmas as the entire Bitcoin Cash client development team was let go.

A few weeks later, co-founders Jihan Wu and Ketuan Zhan were rumored to be stepping down as co-CEOs. That is now a reality as Bitmain reports that Haichao Wang has been appointed CEO. Jihan Wu and Ketuan Zhan will continue to act as directors.

Even though the IPO application has expired, the manufacturer is planning to “double-down on innovating for and serving our customers.” Bitmain notes it has integrated is business structure to be more effective, is releasing the new Antminer S17 and T17, and has signed agreements with various businesses and regional governments.

In the end, Bitmain appears to be working hard to adapt to the new reality of the cryptocurrency marketplace. Projects that haven’t panned out or deemed to be unproductive have been cast aside, and the company is working to be leaner and more efficient. It’ll be interesting to see if they choose to file for an IPO by the end of the year and how much they’ll seek to raise if they do.

What do you think about Bitmain letting its IPO application expire? Let us know in the comments below.

Images courtesy of Twitter/@BITMAINtech, Pexels, and Pixabay.