On 19th September, Calvin Ayre, a major loyal proponent of the much controversial cryptocurrency, Bitcoin Cash [BCH], released a CoinGeek post on Twitter, wherein he has endorsed a viewpoint that Bitmain might reach bankruptcy soon. In his tweet, he wrote:
“#Bitmain will kill the IPO and try to regroup. Problem is their tech does not work anymore and they are failing on their reckless untested wormhole forking plans.”
The history of Bitmain and Bitcoin Cash are tied together as Jiwan Wu, the Founder of the mining giant has been a prominent figure in the BCH ecosystem. The accusations at Bitmain operating as a reserve for the cryptocurrency have been going around the space for a long time.
A research found that Bitmain was in a good financial spot in the first quarter of 2018. Coingeek mentioned Bitmain as having earned a profit of $1.1 billion in Q1 against an old player in the tech industry, Nvidia, whose earnings were recorded to be worth $1.2 billion in the same time frame. During the first quarter, Bitmain also planned to expand its territory by announcing the establishment of a new office in Silicon Valley, California as well as a new data center in Texas.
However, post the success of the company, research centers such as BitMEX and others conducted studies on the financial status of Bitmain and concluded that Bitmain might be in losses after all. In its post, CoinGeek also stated that the mining firm underwent losses due to the stagnancy in the production of new products.
Bitmain also planned to conduct an Initial Public Offering [IPO] recently. This saw bad publicity as well, after the pre-IPO investment deck of the company was alleged to fake its financial accounts, falsely claiming to have received funds from several big investors. As of now, the Ayre owned online portal implied that Bitmain may be facing problems as the firm has been quiet on the IPO front, of late. It also predicted a bankruptcy scenario for Bitmain.
A follower of the blockchain and cryptocurrency environment, David M Lee stated:
“This crypto bear market is testing the solvency of all miners. Bitmain isn’t the only mega-miner who tripped-up and/or are over-extended with mining hardware. MGT (McAfee’s mining co.) is unprofitable and bleeding money. Mining is risky & competitive. Why proof-of-work is best.”
Kroliczyy, another cryptocurrency enthusiast in a comment mentioned:
“what is this? imagine one day CSW says “Coingeek is going to be bankrupt”. I’m more than 100% sure this will happen. Do not trust eachother guys. You are destroying BCH community. You will be fighting with eachother in the future same as you are now fighting with Jihan. Idealists”
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