Bitmain Technologies has abandoned its IPO enthusiasm after the company’s Hong Kong stock market proposal listing expired earlier this week, sparking debate on the future of the entire cryptocurrency market.
The company did say that it plans to reapply at an appropriate time in the future, saying that “despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value.”
Bitmain IPO Abandonment
The Bitcoin (available on Coinbase) mining giant attracted $700 million from investors in Asia leading up to its much-anticipated initial public offering, which has spurred rumors that investors will be filing a class-action lawsuit against the company. WhETHer or not this lawsuit will come to fruition remains to be seen.
This morning Bitmain announced that its next-generation Antminer S17 series would be going on sale globally on April 9th. This more powerful Bitcoin (available on Coinbase) miner is expected to maximize mining profitability by significantly increasing hashrate and increasing energy efficiency by 28% compared to the previous model.
What Does Bitmain’s Hesitance Say About the Crypto Space?
As mentioned, Bitmain has shied away from its public listing because the cryptocurrency and blockchain industry is relatively young. Of course, the volatility of the cryptocurrency market isn’t a secret, with crypto prices dropping significantly.
Still, the decision not to follow through may be more related to Bitmain’s own profitability. Despite bringing in more than $700 million in profit in the first half of 2018, the company reported a net loss of $500 million in Q3 2018 and reportedly spent $500 million on failed chips in the last 18 months.