Hedge Funds to Financially Empower Blockchain Startups While Incubators Implement Subtle Refinements to Them

Hedge Funds to Financially Empower Blockchain Startups While Incubators Implement Subtle Refinements to Them

BlockSafe seeks $27M, Bitmain sponsors NBA team, Swiss Blockchain Incubator to raise $100M, $15M for MakerDAO, Travis Kling plans a $100M hedge fund

  • Cybersecurity solutions company, BlockSafe, initiated the presale of its token aiming to cobble together $27 million. BlockSafe aspires to use this fund to commercialize and market their blockchain security solutions, and reincarnate the trust and security in this technology.
  • AntPool, run by Bitmain, to sponsor the Houston Rockets, a Texan NBA team, and also invest $500 million in the state’s economy. The sponsor amount remains unspecified, however, the deal’s duration is set for the whole of 2018-2019 season.
  • Crypto Valley Venture Capital to launch the first blockchain incubator in Switzerland and aims to raise $100 million. They launched the initial 'Genesis Hub' incubator in Zug, the heart of Swiss crypto valley. There are also plans to replicate this incubator in different parts of the world to create a global network in the years to come.
  • The $300 million hedge fund, a16z, invested $15 million in MakerDAO hence buying 6% of the total MKR tokens. According to Katie Haun, general partner at Andreessen Horowitz, 'the future economy would belong to decentralized stablecoins'.
  • $100 million hedge fund in the mind of Travis Kling, a former executive at Steven Cohen’s Point72 Asset Management. As Bloomberg predicts, the fund may go live as soon as  2 weeks from now. Named ‘Ikigai’, the fund will be backed by capitals from anonymous partners.


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Bitmain Says It Won’t Give Up on World’s Biggest Cryptocurrency IPO

Bitcoin mining giant Bitmain has officially announced its new CEO and says it will restart the IPO listing process sometime in the future. The company endured a difficult 2018 with administrative upheavals, staff layoffs, and significant losses. Bitcoin Mining Giant Gets New CEO In the latter part of 2018, Bitmain laid off a couple of departments amid reports of financial difficulties. In a blog post published on Tuesday (March 26, 2019), the company explained the decisions taken as part of its efforts to align its business model. An excerpt from the statement reads: It was a difficult but necessary decision as we continue to build a long-term, sustainable and scalable business. We did our best to compensate our employees above the legal requirement. Bitmain also made some changes to its leadership structure with Haichao Wang, the former Engineering chief appointed as the new CEO. Co-founders Jihan Wu and Ketuan Zhan remain directors of the company and continue to have a say in “big decisions.” Bitmain Will Restart IPO Listing Process As reported by Bitcoinist on Monday, the Bitmain IPO application at the Hong Kong Stock Exchange (HKEX) expired after six months. According to the company, regulators and other mainstream stakeholders aren’t yet sold to the immense potential of the emerging cryptocurrency industry. In the meantime, Bitmain says it will restart the application at some time in the future. Despite the failure of its first IPO application, the company said the process did deliver some positives for the company especially in the area of financial transparency. Concerning transparency, Bitmain is yet to publish its financials for the second half of 2018. Speculation is rife with reports of huge losses for Q3 2018 of about $740 million. Any attempt to refile another IPO application will see the company being forced to publish its financial report for Q3 and maybe even Q4 2018 depending on the reporting period stipulated by the stock exchange operator. Bitmain Will Focus on Innovation and AI Bitmain also revealed that its focus for 2019 will be on streamlining its business process to focus on innovation in both the cryptocurrency and artificial intelligence (AI) market. Back in February 2019, Bitcoinist reported on the company’s new 7-nm chip touted to deliver more efficient Bitcoin mining. On paper, the new chip will offer about a 28.6 percent improvement in power efficiency, compared to previous iterations of the company’s 7-nm chip. For innovation in the AI scene, the blog post also mentions agreements already inked with important stakeholders across China. Bitmain says it plans to lead the way in terms of cutting-edge innovation for neural processors. What do you make of Bitmain’s stated goals for 2019 after the difficulties experienced in 2018? Share your thoughts with us in the comments below. Image courtesy of Shutterstock. The post Bitmain Says It Won’t Give Up on World’s Biggest Cryptocurrency IPO appeared first on Bitcoinist.com.

Bitmain IPO: From The Next Unicorn To A One Trick Pony In 90 Days

Bitmain’s IPO application has officially expired. Six months after it was first listed, what was to be the crypto-world’s biggest public offering has been shelved, at least for now. The website for the Hong Kong Stock Exchange (HKEX) updated the mining giant’s listing to “lapsed” late last night. On its official blog, Bitmain cited the relative immaturity of the industry and its relationships with regulators and the public as reasons why the IPO was put on hold.  “We will restart the listing application work at an appropriate time in the future,” the company wrote. The news is undoubtedly a bummer, but hardly unexpected. It’s been a long time since September, when Bitcoin (BTC) traded for over $6,000 per coin. Market outlooks and expectations have changed dramatically since then. When Bitmain announced its IPO, prospective investors salivated at the promise of jaw-dropping profits. According to its filing, Bitmain made a respectable pre-tax profit of $151.3M  in 2016. In 2017, as the price of Bitcoin (BTC) hit $20,000 and mining equipment flew off the shelves, annual profits surged to $1.2bn. In the first half of 2018, Bitmain made $1bn in pre-tax profits. By the time the company filed its IPO application in late September, investors – and the company itself – believed they were on the way to another record year. Even though $100bn had been flushed from the market in August, few expected to find themselves in a six-month bear market. Indeed, had markets continued, and attitudes stayed the same, Bitmain would probably have had no issue in raising its $3bn target. But that didn’t happen. The total value of the cryptocurrency market was worth approximately $215bn on September 26th – the day Bitmain filed its IPO application. Today, the total value is closer to $135bn.   Total crypto market cap from Bitmain’s IPO application to present. Source: CoinMarketCap   Declining prices damaged the economic viability of mining equipment, which is expensive to buy and run. As PoW cryptocurrencies plunged in value, so did demand for Bitmain products. Even in July – when BTC was worth $6,300 – most miners could expect to make, at most, a $283 profit over a two-year period, as Crypto Briefing reported at the time. By the time BTC fell to its yearly low of $3,200 in mid-December, returns on investment were so low that many gave up on mining altogether. In some ways, the company dug its own grave. Bitcoin’s hashrate increased markedly during the 2017 bull run, thanks largely to the supply of cheap ASICs, as one customer highlighted on Twitter. Hash rates increased and made it harder to successfully mine a block; the company effectively made mining unprofitable for all but a few major operations. As the graph below shows, it was only in November that hashrate dropped. This suggests that until that point, many miners were running at a loss in anticipation that prices would soon recover. Following the crypto wipeout, which flushed another $100bn from the market, many finally decided to switch off their equipment. Even in late September, when the cracks were beginning to show, many investors believed that the downturn was a momentary blip. There were even signs of a possible ‘bull breakout’ in early October.   Source: Blockchain.com Bitmain now finds itself in an unenviable position. Demand for its ASICs has now dried up, and the company has warehouses full of unsold stock. As a result, the company had no other choice than to put the IPO on ice. As HKEX’s listing rules state, a company which has already submitted an application can restart it at any time, provided they include up-to-date financial records. That means there’s a strong possibility that Bitmain will restart its IPO when the markets recover. The astronomical profits accrued in 2017 means the company should still have a large enough war chest to weather the rest of the bear market and get its house back into order. Assuming, of course, that a market recovery is on the way. The author is invested in digital assets, including BTC and ETH which are mentioned in this article.   Join the conversation on Telegram and Twitter! The post Bitmain IPO: From The Next Unicorn To A One Trick Pony In 90 Days appeared first on Crypto Briefing.

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