Since the emergence of decentralized currency, China has been the focal point of cryptocurrency mining. With the market falling to the “crypto-winter” in 2018, several miners suffered severe setbacks due to the plummeting market.
Huatie HengAn, a Chinese construction company which ventured into cryptocurrency mining due to its lucrative appeal has seen its valuation drop by 90 percent due to the bear market. A local Chinese media outlet 8BTC reported that the subsidiary of Huatie, was sold for a mere $2 million, in comparison to its valuation of $25 million.
The report added that Huatie HengAn engaged in rental service of cloud computing server, purchasing over 36,500 units of “servers” in the previous year. The report further cited that the construction company purchased the “servers” from Ebang and Avalon, however, since the two are crypto-mining manufacturers, it was presumed that the “servers” in question referred to mining hardware.
Given the freefall of the crypto-market after the highs of January 2018, Huatie HengAn saw their investment drop significantly. 8BTC further added that the prominence of the sale was because the company could be “the first listed company in the country revealed to be engaged in crypto business though it may operate under the name of cloud computing”.
Based on the company’s financial report dated December 31, 2018, the loss of the year amounted to $14 million, while the collective coin market dipped from over $800 billion to under $105 billion. The reported loss was over 50 percent of its initial investment of $25 million and over 25 percent of its total revenue.
To make matters worse, in the first two months of 2019, the aforementioned loss increased to $23 million. Huatie HengAn is left with net assets to the tune of $2 million only.
It has not been confirmed by the company that their intention was to mine cryptocurrencies following their acquisitions of the “servers”, however, given the mining companies in question and the correlation of the loss to the crypto-market’s downtrend, many have opined that crypto-mining was indulged in.
The “crypto-winter” has resulted in a slew of downturns in the mining industry within Asia. The Hong Kong Stock exchange [HKEX] failed to further the IPO application filed by mining equipment manufacturing giants, Bitmain, Canaan, and Ebang, citing industry volatility.
Nvidia, the manufacturer of GPU used by miners sank to become the worst performer on the S&P500 in December 2018. In the final quarter of 2018, the company’s share price dropped by 54 percent to $21 from $129.57, with Jensen Huang, the CEO of Nvidia crediting the same to the “crypto hangover”.
Lastly, miners in China could be looking to move elsewhere to pursue their trade as the Chinese government tabled a proposal to ban cryptocurrency mining in the country. The proposal was fronted by the country’s macroeconomic policy institute citing the mining production’s excessive energy consumption. The proposal is under public consultation till May 7.
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Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more
Crypto News – 25 May – Tether’s [USDT] market capitalization hits all-time high, Facebook in talks with Winklevoss twins, trading firms over new cryptocurrency and more
— AMBCrypto (@CryptoAmb) 25 May 2019
Daily Crypto News – May 25
1) Bitcoin Wallet receives part of 5,000 BTC: A recent Whale Alert highlighted a transaction on May 24, where a large sum of Bitcoin [BTC] exchanged hands between two anonymous wallets. According to the alert the transaction took place at 22:13:23 + 1 minutes and 5,000.00001092 BTC was transferred from an unknown wallet, with address 19SiCYaYKZh9A8HUjuh14eg5wtYzKxiFbB, to another unknown wallet with address 14GcjGjxwadzcpmq9EG3KUgTKATjurbnWt.
Read more at https://bit.ly/2VRQwb0
2) Bitwise Report 2.0: Bitcoin [BTC] futures continues growth: On a month-on-month basis, Bitcoin Futures saw a massive bump in April trading at an average of 10,000 contracts daily, peaking on April 4, with over 22,000 contracts traded. To put that number in perspective, in March 2019, the average contracts traded was less than 4,000. Despite the high standards set in April, the average daily contracts traded in May, with 25 days gone has exceeded 14,000 and still looks to grow, given the price performance of Bitcoin.
Read more at https://bit.ly/2W40sTR
3) Craig Wright on private keys: Craig S Wright has, for years, claimed he is the true creator of Bitcoin [BTC] without providing a shred of evidence to support the same. With the crypto-community levelling, Wright could prove his worth by sending BTC from Satoshi Nakamoto’s touted wallet containing around 980,000 BTCs, the BSV man in a twisted cause and effect situation, stated he will “sign” into his wallet only when he proves he is the creator.
Read more at https://bit.ly/2X6fdlw
4) Tether’s [USDT] market cap hits ATH: Tether and Bitfinex are being closely scrutinized now more than ever due to the NYAG’s lawsuit; however, the scrutiny doesn’t seem to have affected Tether as the market cap of USDT has increased by over $100 million in approximately 70 days.
Read more at https://bit.ly/2McaTjE
5) Tether volume shift: Another controversial topic in the cryptocurrency industry was the issue of fake transaction volumes on many of the popular cryptocurrency exchanges. The magnitude of the topic was so large that even Changpeng Zhao, the Chief Executive Officer [CEO] of Binance had raised red flags. This topic and Tether as a whole received another twist when Larry Cermack, the Director of Research at The Block, pointed out a few parameters when it came to the said volume.
Read more at https://bit.ly/2wmk4mJ
6) Bitfinex’s LEO tokens listed on Delta Exchange: Bitfinex’s Leo tokens faced quite a lot of criticism when they were announced, due to the missing $850 million funds from Bitfinex. The private investment round by Bitfinex also faced a lot of heat from the media. However, in a recent development, Leo tokens are being listed on various exchanges for trading.
Read more at https://bit.ly/2HUEnNB
7) Robinhood en-route a projected valuation of $7 billion: Robinhood, the California-based cryptocurrency exchange made headlines recently when a source close to the organization revealed that it was on the verge of closing their latest round of funding at a valuation of a whopping $7 billion – $8 billion. Sources even claimed that the current round of funding could act as a precursor to an even bigger round of funding, which would pit Robinhood with the bigwigs like Coinbase and Binance.
Read more at https://bit.ly/2W64KKj
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