Bitmain, one of the world’s largest Bitcoin [BTC] mining firms and Application-Specific Integrated Circuit [ASIC] chip producers, was in the news in 2018 following news surrounding an Initial Public Offering [IPO]. The mining firm is back in the spotlight yet again after Dovey Wan, Founding Partner at Primitive, pointed out that Bitmain’s Hong Kong Stock Exchange initial public offering filing would expire this week on 26 March, 2019. She stated,
“Wow, just randomly checked the calendar and found: Bitmain’s HKex IPO filing will officially expire on coming Monday (was initially submitted on Sep 26th 2018), which will officially mark the failure of its IPO attempt RIP Bitmain HKex IPO”
She further added,
“There is a 6 months window for an IPO filing to be moved into IPO hearing stage, if the hearing does not happen in 6 months it will automatically expire Bitmain’s next attempt can be NASDAQ but it needs to find another underwriter, and fix its financials”
Bitmain however, did not address the issue on its official platform. The official filing for the IPO was made on 16 September, 2018 and so far, there have been no reports pertaining to the Committee hearing. In December 2018, a report by South China Morning Post had stated that the mining firm was seeking to raise over $3 billion through this Initial Public Offering.
It also stated that according to the Hong Kong Stock Exchange’s listing rules, a six-month window [closed-door hearing] for all listing applications was given. In this timeframe, the Listing Committee decides whether to approve or disapprove the listing after their queries are cleared. If this did not happen, the listing would formally lapse. Further, regulators have expressed their concerns over approving fundraising plans for a cryptocurrency-based business “before proper rules are in place.”‘
Additionally, Samson Mow, the CSO of Blockstream, commented on Bitmain’s IPO, stating that “it is incredibly risky” for an investor because of concerns of BCH investment.
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Bitcoin will likely be valued at $100,000 with a market cap of over $2 trillion before the end of 2021
The entire cryptocurrency market seems to be on the brighter side of the market since the beginning of the year. A majority of the coins have recorded significant recoveries from their 2018 slump, a period during which most coins lost over 90 percent of their value, when compared to their all-time highs. Among all the coins in the market, Bitcoin [BTC] aka the digital gold, was noted to be making a massive comeback as the coin breached the $11,000 mark after nearly 15 months. The coin however, soon retracted to settle below the $11,000 level.
According to CoinMarketCap, at press time, Bitcoin was trading at $10,887.27 with a market cap of $93.549 billion. The coin recorded a 24-hour trading volume of $20.757 billion for the past 24 hours and saw a massive rise of over 17 percent over the past seven days.
Anthony Pompliano, Co-founder of Morgan Creek Digital Assets, predicted that the largest digital currency could rise to reach $100,000, before the end of 2021. Pomp added that he was around 70-75 percent confident in this prediction. He stated,
“As I have previously said, making predictions is difficult […] Part of my process as a professional money manager is forming a thesis (price target), identifying a timeline (date), and establishing a confidence level. And then constantly re-evaluating those three aspects of my thought process as I receive new information.”
Pomp however, listed six pointers that have to be understood beforehand. First, this prediction is not an investment advice, and people should do their own research before investing in the digital currency. The second is with respect to Bitcoin’s volatility, with Pomp remarking that since it was a highly volatile market, the coin could witness a significant fall before being valued at $100,000. He stated,
“I anticipate that there will be numerous 20-30% drawdowns from new all-time highs as the asset continues to appreciate in value. These mini-boom/bust cycles should not cause panic, but rather need to be understood as natural market dynamics whenever an asset gains significant value in short periods of time.”
Further, the partner of the investment firm stated that the rise would be driven by several catalysts. This includes institutional adoption, exchange-traded funds and retail product approvals, global instability, governments all across the globe manipulating currencies, markets and economy. He went on to state,
“The market cap of Bitcoin will reach $2+ trillion when Bitcoin is worth $100,000. This is less than 1/3 the market cap of gold and less than 1/40 the global money supply.”
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