Yeasterday (26th of September), one of the biggest companies in the cryptocurrency space, Bitmain filled prospectus for its anticipated IPO!
There we long lasting rumors that Bitmain may cancel its scheduled initial public offering (IPO). The company could not launch the expected IPO due to different reasons, including the current situation of the cryptocurrency market.
Additionally, the volatility that the market is experiencing has also affected the company’s ability to launch the expected IPO.
Another important reason that has a negative impact in the company is a downtrend in the sale of crypto mining hardware. According to BitMex, the sales dropped from 2.5 million to 1.9 million in the first quarter of the current year. Other companies such as Nvidia and AMD have also experienced a decrease in sales of chips that are used to mine cryptocurrencies.
If in the future, there is less demand for chips, this could convince investors not to invest in the IPO. Some of the reports said that Bitmain was going to gather over $3 billion dollars from the IPO.
But this is not all. Bitmain has also seen an important number of new companies involved in the sale of chips enter the cryptocurrency market. Some of these firms are Canaan Inc, and Ebang International. Bitmain does not seem to be the only company in the market, but there are others that are eating up Bitmain’s market share.
Some time ago, companies such as Japan’s Softbank and China’s Tencent said that they did not invest in the company. Some rumors appeared saying that these two institutions were investing in the mining company.
Several days before there was no information about what Bitmain has in mind for the future. But clearly, it seemed that an IPO was not so probable as it had been some months ago.