Just as Bitmain couldn’t take any more bad news, it has been handed a massive setback with its potential IPO in Hong Kong. Unfortunately for the world’s leading crypto mining hardware manufacturer, the Hong Kong Stock Exchange (HKEX) recently announced that it will not be processing any IPO applications for distributed ledger technology (DLT) companies due to the fact the industry is still in its infancy. On top of this, the HKEX also said that until regulators create a solid framework to govern this new technology, then no applications will be moved forwards.
No IPO for Bitmain
Bitmain was desperately looking forward to the launch of its IPO in the hope of bagging some cash to survive and stay afloat during this bearish market. Leaked documents show that Bitmain has lost more than $740 million this year alone in bad trades and the severe devaluation of the crypto markets. The HKEX’s stance towards the blockchain and crypto industry is definitely not good news for Bitmain, as it could take months for the required framework to be created.
Bitmain Facing Two Legal Battles
After suffering heavy bear market losses, a lawsuit is the last thing Bitmain needs – let alone two. UnitedCorp is suing the Bitmain for illegally hijacking the Bitcoin Cash network during the almighty hash war that took place back in November. UnitedCorp alleges that Bitmain diverted a ton of its mining power to the Bitcoin Cash network in return for payment from Roger Ver. While UnitedCorp’s goal behind the lawsuit is still unclear, we would all rather see Roger Ver and Bitmain collude to stop the poisonous Craig Wright take over the Bitcoin Cash name.
On top of the lawsuit from UnitedCorp, Bitmain is also in a legal dispute with a group of angry miners. A group of 100 plaintiffs allege that Bitmain sold them mining equipment that mined Bitcoin for Bitmain using their power without their permission. However, this looks like a clear-cut victory for Bitmain, as these mining rigs were clearly not configured properly and will go down as the plaintiff’s lack of understanding of the mining rig’s firmware.
Project Sophon Goes Under
Bitmain’s woes don’t end there. At the start of December Bitmain was forced to shut its office in Israel, meaning the end of its AI project. Project Sophon was supposed to give Bitmain’s mining hardware and mining pools a distinct advantage. Sophon would automatically switch mining rigs between mining the most profitable cryptos and best pools to further enhance their grasp over the crypto world. After its balance books took a massive hit throughout 2018, all 23 employees in Israel will be terminated and the project unceremoniously dumped.
Time might be up for Bitmain once and for all, especially now its hopes of an IPO have been shattered. If that’s the case, the Deutsches Technikmuseum has already created a final resting place for Bitmain next to legends from the computing and mathematics world. Unless we see a huge boost in the price of crypto in early 2019, by this time next year Bitmain could very well no longer exist.
