The Bitmain IPO was expected to help the cryptocurrency mining hardware manufacturer, Bitmain, raise funds to invest in some of its projects. However, for more than six months, the request for the Bitmain IPO has been under review by the Hong Kong stock exchange. After months of waiting and attempting to cross several hurdles, the mining giant seems to have abandoned its Bitmain IPO plans per the latest report on Forbes.
Bitmain IPO Abandoned By Bitmain Technologies
The Bitmain IPO was one of the highly anticipated things that were expected to bring the price of Bitcoin back to its glory. Imagine the panic that engulfed the entire cryptocurrency space when news broke that the mining giant was putting its IPO plans on ice. The Hong Kong stock market gave Bitmain a timeframe to submit its reports. Unfortunately, the company deliberately allowed the time to expire and said that it would apply again at a later date when it is more prepared. The announcement on the company’s website was as follows;
“We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value. We will restart the listing application work at an appropriate time in the future.”
Last year was rough for Bitmain. As reported by smartereum.com, the company suffered a net loss of about $395 million in the Q2 of 2018. Some other unconfirmed reports stipulated that the $500 million the company invested in chips creating project wasted because it didn’t work as expected. There were also rumors that the company was planning to downsize massively because of a lack of funds. The Bitcoin Cash hard fork war also contributed to the company’s predicament.
How Does The Failed Bitmain IPO Affect The Price Of Bitcoin
With the IPO made in Bitcoin and other cryptocurrencies, Bitmain was expected to invite institutional investors to the cryptocurrency space. The institutional money was predicted to ignite the next Bitcoin bull run that will drag the price of all cryptocurrencies higher against the USD. Bitmain was also expected to keep its project alive with the funds from the IPO. Now, without this IPO, things are looking a little dark.
Many of the Bitcoin price predictions this year have included institutional money from things like Bakkt and the Bitmain IPO as fundamentals that will fuel the next Bitcoin bull run. With hopes of a Bitmain IPO dashed, the weight now hangs on Bakkt. The Bakkt Bitcoin ETF approval is another highly anticipated event. If the Bitcoin ETF approval comes soon, hope will return to the industry and the long-awaited Bitcoin bull run will follow. If the price of Bitcoin rises significantly, it will most likely drag the entire cryptocurrency market along. This will lead to a market-wide cryptocurrency bull run.
For now, no one can determine the exact effect the cancelation of the Bitmain IPO will have on the industry. However, it’s most likely going to be negative or neutral but certainly not positive. All we can do is wait and see. The price of Bitcoin is currently in red after trading in green for two days.
What do you think? Will the Bitmain IPO crash lead to a fall in the price of Bitcoin or affect Bitmain negatively? Share your thoughts in the comment section below.