When most of the players in the crypto mining industry are feeling the pinch of subdued crypto prices and weak market sentiments, leading players such as Bitmain is also a no different case.
According to a tweet by BTCKING555, who mostly tweets about the crypto sphere and more specifically about Bitmain, has said that the mining giant has lost $740 million in the third quarter of 2018 including loss of inventory and loss from Bitcoin Cash.
We got leak of Bitmain Q3 numbers! COMPLETE DISASTER. The company lost $740 Million including losses on inventory and bitcoin cash! And this is not accounting for hash war costs! #bitmainipo @HKEXGroup
— BTCKING555 (@btcking555) December 4, 2018
If the figures come out to be true, then it will definitely jeopardise the company’s future and its plan to raise capital from the market through the listing of its share in the Hong Kong Stock Exchange.
And, also according to the tweet, this loss number is not final and could end up much higher as it is not accounting for the hash war cost during the Bitcoin Cash hard fork. Bitmain is the largest holder of BCH and was holding more than 1 million tokens of it. As per the understanding, the mining giant was methodically liquidating its Bitcoin holdings to fund increase its stake in BCH. Now BCH has lost the majority of its value since the fork and is trading near its all-time low levels.
The company is facing troubles on multiple fronts including falling sales in the mining equipment business, technical performance of its mining hardware, crypto market failing to recover from the bearish environment are draining the company’s book. Now, it has to be seen how the company is going to plan its IPO.
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