HKEX Says Indecision to Bitmain IPO are Just Rumors

HKEX Says Indecision to Bitmain IPO are Just Rumors

In an email to Cointelegraph, a representative from the Hong Kong Stock Exchange (HKEX) calls the alleged qualms surrounding Bitmain’s impending IPO as rumors, declines to comment on the firm’s IPO status

The steep drop in the cryptocurrency market is a challenging time for the mining industry with some firms shutting down. The downward trajectory caused some miners in China to put their equipment up for sale by the kilo. Citing volatile circumstances, sources from another crypto news outlet supposed that HKEX is showing signs of hesitations in listing Bitmain’s IPO. The source further said, ‘There’s a real risk that they could just not exist anymore in a year or two.’

The Impact of Market Conditions on Cryptocurrency Mining

Aside from the consequences stated above, mining pool founder, Mao Shixing, calculates that Bitmain’s Antminer S7 would break-even when Bitcoin is priced at $11,581 and its Antminer T9 model will break-even at $5,376. Bitcoin is currently trading in the periphery of $3,500.

Bitmain also closed its development base in Israel and laid off some of its employees.

Other Issues Surrounding Bitmain

In November, Gor Gevorkyan, a Los Angeles resident, sued the mining firm for allegedly formatting its mining rigs to mine cryptocurrencies for the firm instead of for equipment owners. Gevorkyan is suing for $5 million.

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Ripple partner SBI Holdings announces foray into mining space; will compete with giants Nvidia and Bitmain

SBI Holdings, Inc. announced the establishment of its chip mining arm, the SBI Mining Chip Co., Ltd or SBIMC. With this development, the Tokyo-based firm will foray into the manufacturing of mining chips, a strategic move to enhance its existing digital asset business. The official notice issued by the financial giant stated that the SBI Group practiced its digital asset mining business overseas, and now planned to diversify its potential business scope. SBI group partnered with a US-based semiconductor firm to roll out the new manufacturing unit. The group, which is a strong advocate of a wide range of businesses based on blockchain elucidated, “The SBI Group will promote efficient, reliable and sustainable mining operations to develop a sound and solid cryptocurrency market.” SBIMC will be led by Adam Traidman, who was an investor in the company and also served at NASA previously. Among his many accomplishments, Traiman formerly served as the CEO in Chip Estimate and WearSens. SBIMC will be leading chip manufacturer, Nvidia’s latest competitor. The Taiwan-based firm sustained losses during the crypto-winter, but it recovered after the recent acquisition of Mellanox, a semiconductor player. The Bitcoin mining giant, Nvidia, had predicted a bullish crypto market was confident of clearing its stockpiled mining equipment. The chipmaker was also reported as the worst performer in the S&P 500 list, at the end of 2018. Another big rival in the mining ecosystem is Bitmain. The Beijing-based mining giant has also been operating poorly after registering a loss amounting to $500 million, owing to the massive crashes in cryptocurrency prices. The post Ripple partner SBI Holdings announces foray into mining space; will compete with giants Nvidia and Bitmain appeared first on AMBCrypto.

Report: Bitmain to Launch 200,000 Crypto Mining Rigs in China

According to a report published by CoinDesk on Mazar. 21, cryptocurrency mining conglomerate Bitmain is looking to launch up to 200,000 new mining rigs in China, at a conservatively estimated cost of $80 million. The move will allow Bitmain to take advantage of the relatively cheap hydroelectric power in China during the summer of 2019, with CoinDesk also reporting that the expensive deployment of equipment may end up being more cost-effective for the company than outright selling their inventory. CoinDesk also reports that the decision by CoinDesk is positive for the industry and miners, sending a signal of a “broader shift in the market, with miners preparing to invest again following last year’s contraction in capacity.” Bitmain, which holds the distinction of being the largest manufacturer of cryptocurrency mining equipment by market share, can take advantage of the excess hydropower in China’s southwestern province for cheap mining costs relative to the broader market. According to sources in the region familiar with the situation, Bitmain has “already started discussions and making deals with farms to host its equipment so that it can be fully prepared.” The report also includes information that Bitmain will be primarily deploying its newer model mining rigs, the AntMiner S11 and S15, which retail for around $500 and $1000, respectively, per unit. It is also unclear according to the sources which proof-of-work cryptocurrency Bitmain will be targeting to mine for. As CoinDesk points out, even at $80 million in projected costs to deploy the equipment in the new region, the move represents a “non-negotiable opportunity cost” considering Bitmain’s primary revenue source is from mining equipment sales as opposed to actual mining. However, the company is caught in a difficult position due to the ongoing bear market that has extended into the beginning of 2019. While the company could attempt to selloff the bulk of their 200,000 intended units for deployment, the marginal profits that could be made from mining in the presence of cheaper electricity may provide the better sunk cost. CoinDesk calculates that, using conservative estimates, Bitmain may be able to secure a monthly profit of $7.7 million. CoinDesk also reports that Bitmain’s scaling up in mining operations could send a strong signal to the broader market, particularly as cryptocurrency mining and coins prices continue to linger at relative lows. Estimated reports found that over 600,000 Bitcoin miners shut down operation in 2018 due to the falling con prices no longer proving profitable relative to mining costs, leading to the market being flooded with second-hand rigs being sold at a discount. Despite the decline, Bitmain and other miners deploying to China in the upcoming wet season to take advantage of excess hydroelectric power could bring about a sharp increase in Bitcoin’s hash rate, with some estimates putting it at 70 quintillion hashes per second (EH/s), well above the all time network high of 60 EH/s. Renewed mining interest in conjunction with building crypto adoption that has already started in 2019 could lead to a reversal in both coin prices and increased competition to capitalize on the market while prices are still depressed. With increased mining competition for Bitcoin, the selling price for newly minted coins should also rise, which could have a broader effect on BTC pricing. The post Report: Bitmain to Launch 200,000 Crypto Mining Rigs in China appeared first on Ethereum World News.
Ethereum World News

Bitmain to deploy 200,000 miners, looks to benefit from cheap hydropower

Chinese mining equipment giant Bitmain is planning to deploy 200,000 miners to mine for cryptocurrencies on its own, CoinDesk reports. Bitmain will then be able to reap the benefits of cheap hydroelectric power in Sichuan province. According to CoinDesk, the company is planning to deploy mostly new models, such as AntMiner S11 and S15. Considering the unit prices—AntMiner S11 costs $502 while S15 prices range between $722 and $1,035—the move calls for a huge investment. Large capital outlay aside, it might still be the most profitable choice for Bitmain at the moment considering the crypto winter. 
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