Bitmain Technologies, the Chinese Bitcoin mining giant, might abandon its IPO application on the Hong Kong Stock exchange, which is due to lapse tomorrow. 27 March would mark the completion of six months since it filed a draft prospectus for the IPO application. According to norms, if an applicant fails to hear from the exchange’s Listing Committee after a stipulated time of six months, the listing lapses, cited Finance Magnates.
However, this has not discouraged the company as in a blog post, Bitmain said that they will restart the listing application work “at an appropriate time in the future.”
Bitmain makes the world’s largest cryptocurrency mining computers and seeks to raise up to $3 billion in new capital and achieve a market valuation of over $15 billion.
However, Founding Partner of Primitive Ventures, Dovey Wan, reported on Twitter that the Hong Kong Stock Exchange had moved the file from the active column to the inactive status, with effect from 26 March.
Bitmain was hoping to be listed on a major exchange, becoming the first crypto-business to become part of a major stock exchange. The IPO was expected to take place during the first quarter of 2019. However, ever since the company informed local market regulators of its flotation plans, Bitmain faced difficulties from all sides. It included declining prices of crypto negatively impacting its sales, and the below-par technical performance of its mining hardware, reported the publication.
The company in their blog post noted that the listing process made it more transparent and standardized, and that the process of rationalization and optimization made their business more focused.
Earlier this year, concerns were raised over Bitmain’s sustainability after it registered a net loss of $395 million in Q2 of 2018. It was also reported that they spent $500 million on failed chips over the past 18 months. These developments and rumors heavily impacted the company’s financial capability as it lost about $500 million in the third quarter of 2018. To cut their losses, the Beijing-based company laid off an undisclosed number of staff in December 2018.
Bitmain’s market status hurt the profitability of mining operations and demand for the custom chips. The competition is also growing as Samsung announced that it would be entering the ASIC chip market for crypto-mining.
Bitmain said they established a clear business division for mining hardware, AI, mining farms and mining pools. It also integrated the resource lines for chip design, hardware, and software to provide more effective support for their important business lines, and to allocate premium resources to their key projects. The company added that it enabled the company’s main business to flourish, while reiterating their commitment to customers.
In a series of changes carried out by Bitmain, the mining giant appointed Haichao Wang as the CEO of the company, due to his experience in the field. He was previously heading multiple departments at the company. The founders of the company, Micree Zhan and Jihan Wu, will serve as directors of the company.
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Economist Stephen Moore joins project touted to be ‘world’s first decentralized crypto central bank’
Stephen Moore, former member of the Wall Street Journal editorial board and popular economist, recently attempted to join the Federal Reserve. Alas, he was denied the opportunity. Now, the economist is back in the news again.
According to a report by Fox Business, Moore has joined a group of entrepreneurs who plan to kick-start their very own ‘Federal entity’ named “Decentral,” which incidentally will be labelled as the “the world’s decentralized central bank.”
Sam Kazemian, CEO of Decentral, said that the endeavor’s major objective was to create a new type of central bank that would stabilize virtual assets such as Bitcoin and its counterparts. The bank would work on the same lines as the Federal Reserve does for the U.S economy. Decentral plans to carry forward responsibilities in terms of regulating the supply of cryptocurrencies in the market, in the same manner. Apparently, Decentral will also issue its own crypto tokens in the exchange for other digital assets, with the valuation of the token tied to a stable assessment method.
While Moore has been hired as a Chief Economist, it was reported that his role within the company is still “unclear.” Moore said,
“I am really excited about doing this. I hope it makes me rich.”
Moore also drew comparisons between Facebook’s recently unveiled Libra and Decentral’s offer. He stated that the Decentral crypto would offer a payment method that would be pegged to a stable currency and it would present major uniformity and reliability in the digital asset space, which is often divided among other major cryptos.
Moore added that his employment with a cryptocurrency-backed entity did not create a wedge between his work as an economist. In the current scenario, cryptocurrencies have a huge role to play in the economy, in a way not contradictory to Federal Reserve policies, he added.
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