Bitcoin Forum

Just few hours the news cane that Bitmain is on brink of bankruptcy.

Main reasons were huge inventory losses and investment on Bcash went wrong.

They tried to save Bcash and now paying price for it.

https://www.reddit.com/r/Bitcoin/comments/9fwopd/bitmain_on_brink_of_bankruptcy/

Usually you only lose when you sell at a loss, but that doesn't go up for businesses having to factor in even virtual losses, and that will definitely work against them with how they are trying to tease potential investors related to their *potential* IPO. I actually thought Bitmain would be smarter than this, but they shot themselves in their foot and it likely won't end well.

The planned pump during their recent stress test was a desperate attempt to initiate a bull run, but it failed. Investors aren't willing to buy Bitmain's bag.

It's pathetic when you take into consideration that the largest miners aren't able to sell the major part of their minted coins, so what happens is that every large to semi large pool ends up sitting on a large number of coins while the price keeps going down. Supporting the wrong coin ain't easy.

Not sure how wealthy Jihan himself is, but he could technically pump his own capital in Bitmain to write off some of the losses.

Better cash out all those Bcash and use it for funding. Or I don't know coin offering>, I really don't know how they use tokens though.

I can't believe it they had so much revenue every year, so much additional money to spend, they were the giant. If they go bankrupt its due to their own stupidity. How can you have millions lying around and waste it all? Probably BCH costed them the most. Roger was making money selling on the side while Bitmain was pumping with their money.
Whoever sold BCH in the first 6 months of 2018 was probably taking Bitmain's $$$

unfortunately I can't open the link that you post, I can't give an opinion without reading the link, hopefully the problem can be solved

to be honest i can not see any truth in this and the fact that this is a post by some newbie on twitter and reposted by another newbie (possibly the same person trying to get twitter followers) reposting it on reddit/r/bitcoin makes be more sure about it being false information.

reading the article that is obtained after 3 links! using google translate i can see it is just click bait. 70% of the article is talking about Jihan Wu's personality and degrees :D
the 30% remaining is just talking about BCH and saying they lost basically because they invested in BCH!
of course there have been losses but they are far from bankruptcy. first of all because they article is not considering the profit they gained by doubling the bitcoin they had after they forked also it is not considering the profit they made by pump and dumping BCH!

They didn't really double their Bitcoins. The split gave them additional coins in form of BCH, where they then used BTC to accumulate even more. If you also take into consideration that they have pumped the price numerous times last year, where they tried to maintain certain higher levels, you can imagine how severe the losses might have been at that point already.

Another important aspect is that by entering 2018 Bitmain also entered a new fiscal year, so the losses they suffered from this year is what really matters.

when some groups pumps an altcoin, they do it to make money. in other words they pump it so that they can dump the coin on top near the peak not to just pump and then watch it go down! that doesn't even make sense.
dumping on top means they made a lot of money while gullible newbies were buying BCH thinking it is the "real bitcoin"!

I was wondering why they were letting BTrash slowly bleed out and not pumping it again. Turns out it's because they can't because they are bankrupt.

A ropey source, but will be amazing if true. When they liquidate their massive BCH bags, we might finally see that trash coin dump to nothing where it belongs.

Bitmain is still going strong afaik, but holding BCH seems to be a bad move for them. They are expanding the bitcoin mining globally and then needed more funds for it that why they started their own IPO in order to attract investors and of course to have more funds as reserved, but I don't think they are on the brink of bankruptcy though, they still have the monopoly of bitcoin mining hardware and that alone is enough to keep them afloat for a long time.
 

It all depends on their liquidity. If they have enough "floating" cash available to wait out the BCash drop, then they will

survive, but when you are tied down too much, then the red flags will most probably start showing. This just shows you what

happens, when you fall for the Roger Ver stories.  ::)  He will pull down some more people with him soon and then people will

see his true colours.  ;)

I do not believe that. Their cost of production seems to me to be very low and with a great profit margin.
They are totally dominant in one of the most important sectors of Bitcoin. They have few personal expenses. They still have great machinery that could easily be converted into cash if needed.
Still has the possibility to seek money among investors before the IPO. And even though BCH has fallen so much, it is still a valuable asset that can be converted into cash. What big immediate expense do they have? They do not have Bank debts.

if you check the tweets history of that dude who OP is quoting here, he has been talking about Bitmain and how it is going bankrupt for a long time now. i wouldn't want to jump to saying FUD but this is pretty much what FUD looks like from someone who has been shorting bitcoin and trying so hard to make gullible sheep panic into thinking the biggest bitcoin mining farm, mining pool, bitcoin ASIC producer, ETH ASIC producer, biggest altcoins including BCH mining farm and pool is going bankrupt after making at least 2 or 3 billion dollar pure profit last year alone!

I agree, pumping a price without selling at peak doesn't make sense, but what the BCash camp is doing doesn't make sense in its entirety. They really believe that their version of Bitcoin is Bitcoin, and for that reason kept accumulating more regardless of how hard people kept dumping. In a matter of like 3-4 months, Bitmain's BTC holdings shrunk with just under 15,000BTC.

Let's do a quick calculation;

31 DEC 2017; BTC holdings ~36,900BTC.
31 DEC 2017; BCH holdings ~841,900BCH.

31 MAR 2018; BTC holdings ~22,100BTC.
31 MAR 2018; BCH holdings ~1,021,300BCH.

The average BTC/BCH price during this period ~0.13BTC which loosely calculated could have accumulated Bitmain 114,000BCH + 40,000/50,000BCH from their mintings returns ~164,000BCH in total.

841,900BCH + 164,000BCH = 1,005,900BCH, which is pretty close to their balance on march.

Further accumulation becomes visible once they release new balance figures.

This is indeed sad. But it says it is on the brink of bankruptcy, that means it has not been filed for bankruptcy yet. The company needs to see how liquid they are if they want to prevent it from happening.

INEWS QQ, a chineese publications, recently revealed an article on Bitmain. It give a hint of Bitcoin going towards bankruptcy. The main cause that they indicated for this condition is the massive inventory loss and the loss in Bitcoin cash investment.

The aforesaid news might not be true. But if it is true, then this might be due to the failure of the initial public offering strategy. Moreover, the investment on Bitcoin cash might have also failed which cause Bitmain to go bankrupt.

all this news even the inews QQ is about a report done pre-june

bitmain have actually got new asics being tested. they sold off their old rigs at a pleasant discount of $850/rig
and over that period their hashrate did not go down(which would be the case of liquidising all stock)

the hashrate went up because they are now using (cough i mean QC testing new rigs) before releasing them later this year
and in june they also accumilated investors

in 2018 bitmain made 22 investments themselves into other companies
https://www.crunchbase.com/search/funding_rounds/field/organizations/num_investments/bitmain
such as giving Circle $110m in May 2018

and also $14m as recently as september 10th to a company called 1000video


but here is the real funny part.
has anyone noticed BTCC..

I don’t think that situation is so bad for this company. Yes, they have very large losses, low sales, but situation with their cryptocurrency was inspired by them and they got a good profit on it.

Sorry, but it looks like Bitmain may be a going down, like the Titanic. 50% of workforce fired.

https://www.ccn.com/bitmain-bitcoin-mining-giant-to-sack-50-of-its-workforce/ (https://www.ccn.com/bitmain-bitcoin-mining-giant-to-sack-50-of-its-workforce/)

Pretty sure this means their IPO is deader than dead. Though Ebang seems to be going thru with their IPO.

https://www.financemagnates.com/cryptocurrency/news/crypto-miner-ebang-re-files-for-ipo-despite-weak-q3-results/ (https://www.financemagnates.com/cryptocurrency/news/crypto-miner-ebang-re-files-for-ipo-despite-weak-q3-results/)

Well, even for ASIC makers and big players like Bitmain...sh*t just got real!

omg

did they do the pump of BCH from 100 to 200 usd? from 16th to 21 december?

if so they are damaged seriously, poor guys.

now I experience very much bankruptcy, my bitcoin coins are now not selling well, there are a lot of losses that I bear, but I am still patient

do you want me to lie to you so you feel better or tell you honestly what i think and expect?

Bitmain is not going down completely, they have a lot of bitcoin cash in reserve so when the money runs out they will simply dump it. Not good for any BCH hodlers, it will be a mt gox style dump when it happens

There is a saying that the dead camel is bigger than the horse.
Bitmain is currently a whale that to be stranded, but please note that it is only stranded. Once it is put into the water (or waiting for the tide), it will once again become the giant in the water, never underestimate the vitality of the whale.
In the past few days, we can see that it is struggling. The price of BCH is fluctuating drastically. In fact, whether it is ABC or SV, although they are competitors, I am sure that they do not want each other to die.

I read an article about this yesterday. Bitmain said he had 1 million BCH and LTC. They gave their opinion that they could sell these coins because of a shortage of cash. This can be dangerous even for the whole market.

Bitmain should have focus on the real which is bitcoin rather than financing BCH and trying to conspire with coinex exchange to rekt investors, currently they are in trouble and may eventually just enter the dip sea. I wish they could manipulate their way out. Maybe they should consider taking loan from the bank to reviving their financial mess. Wait! it seems banks will send them to the grave. hahahha!!! it's their making and they should deal with it.

I read an article about this yesterday. Bitmain said he had 1 million BCH and LTC. They gave their opinion that they could sell these coins because of a shortage of cash. This can be dangerous even for the whole market.
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This is partly why I fear to keep my fund in bitcoin cash, what if bitmain go ahead to offload their holings in BCH and withdraw their support from the market, this will spell doom for the already struggling BCH in this current bearish market. 

Even though it takes you to the brink of bankruptcy, but I think you still have a choice, you can choose to leave or you choose to stay and wait for recovery.

bitmain fired a team of software developers concentrating on a bitcoin cash wallet........
....... yawn.. (altcoin drama)

meanwhile bitmain is delivering tonnes of next gen asics this week. but shhh dont tell the public

Anyone who was paying any attention at all saw this coming a mile off. Hell, I made a post in this very thread 3 months ago predicting a huge dump when they finally liquidate their remaining bags. If you are still holding either of the BCH forks at this point, then you either have been ignoring the entire crypto-world for 3 months or you are a moron. There is no reason to still be invested in either of these scam coins.

Pretty hilarious on the part of Jihan Wu, really. Bitmain were dominating the ASIC world - all he had to do was to keep releasing a new miner every few months and he could have been set for life. Instead he threw all his weight behind a shitcoin and now is facing mass terminations and possible bankruptcy.

Damn, this is bad! They are the main miners producers and without them could be a hard punch to bitcoin. I had read some bad news about them in the past months and looks like things are just getting worst for them  :-\ let's hope they survive to these hard times because another way we will have to get ready for the crash.

The competition is not between ABC and SV but Bitcoin and Bitmain.
The Bitcoin promise is a true worldwide decentralization that no one can control. Bitmain tried to break this rule reaching alone the 51% Bitcoin hashpower therefore compromising the network. This is why the Bitcoin's price is dropping. The only thing that gave Bitcoin it's value doesn't exist anymore thanks to a single company. Paradoxically Bitmain for saving itself is waiting for something that will never happen, the rise of Bitcoin price. It will happen eventually when Bitmain will be dead, only then the market will trust in the Bitcoin's neutrality. It seams that Bitmain broke a law of nature that kills you if you try to break it. The longer and the lower the Bitcoin price will stay the bigger the cleanup of the Bitcoin ecosystem will be.

he's not facing bankrupcy.
a certain guy in another pool (BTCC) lost his job when BTCC were on brink of bankruptcy and now samson mow is on a distraction drama crusade to hide his own misery.
come on.. has anyone actually looked into BTCC and seen the difference of BTCC from 2017-2018
anyone question why samson is now blockstream and by bobby lee is now litecoin orientated instead of BTCC orientated

bitmain is making money. they are delivering out new rigs this week.

i also predicted in october that things would change for november, all i needed to do was see the hashrate curve of the old asics being shut down and sold off cheap before they became worthless. to then see it would play out against the market:mining dynamic soon after. it had nothing to do with altcoins. it was to do with prepping for next gen asics

anyway back to discussing bitmain
the nxt gen are designed, tested and manufactured, meaning they dont need the temp staff they hired. just to cover the excess temp work needed.

as for the side drama of altcoins. thats like going on vacation for a few months with a few foreign coins in your pocket. and now finding out that you dont need or want them... its not life changing. its just having a few foreign coins that ar not worth spending

meanwhile he is still getting funds from different sources and still producing asics

You are very optimistic. Maybe too much  ;) Bitcoin reached 20.000$ when Bitmain was starting to impose itself as the only dominator on the crypto-hardware market. Now that Bitmain finally holds the hashpower monopoly Bitcoin is worth 3.500$. How come?  ;) Be honest and admit that you known in your heart that Bitmain is doomed.  ::)

Bitmain does have problems, but I have never found any mention of bankruptcy anywhere. Even hypatetic. It is quite obvious that, against the background of falling sales of asiki, the company had financial difficulties, but this does not mean that it is on the verge of bankruptcy. I think that Bitmain will safely survive this crisis. Reduce staff, reduce costs and savings over the previous year, and survive the current fall. I hope that the 2019 year for cryptocurrency will be more positive.

Bitcoin and Bitmain are not synonyms. Bitmain tried hard to make appear it so. I hope 2019 is positive for crypto and I couldn't care less what end will make Bitmain and Bitcoin cash or whatever they called it of course.

PS
Firing 50% of a company's workforce is a strong sign that company is facing imminent bankruptcy at least you see this with eyes of an incurable optimist.

That's the problem when you base all your eggs in one basket, so many projects that could be started with that money, blockchain is a nascent and revolutionary technology, you can invest in thousands of things and innovate, and they decided to waste time with bcash.

But firing 50% of workforce is a way to cut losses and cost. They are probably back to square one again. The time when the price of bitcoin or BCH was really low. I think laying off is a business decision and they have Asics to be released so they will not go bankrupt, will just try to survived and weathered this storm and once the market recovers, and so as their business.

Litecoin is the other coin that they will dump. Most likely they will lose their BCH holdings first as it is more volatile, then they will dump litecoin, and the final will be BTC. Keep an eye on both BCH and LTC, see if it correlates with bitmain finances

Bitmain made a big mistake when they started supporting BitcoinCash. If BitMain goes bankrupt, then Bitcoin will have problems with mining.

Bch was their ruin, they wasted millions pumping for Roger Ver. Now we all know how it ended with the fork and downturn of market

It's not  just about supporting Bitcoincash, They spent millions of dollars fighting a pointless hash war which ended in nothing meaningful. Couple with the non-so-friendly crypto market, It only got worse as they didn't achieve anything at the end of the day. The IPO is their last chance now to get back to winning ways. Hope they don't fuck it up.

I think if bitmain goes bankrupt, its dont give big effect to bitcoin because most bitcoin miner in china. There is no benefit on bitcoin cash war and its happen now. Beside the price falling, Bitmain as company goest bankrupt.

look at the bitcoin price below 4000 $ you can still use it. if you know selling will get a loss then don't sell now, sell when prices start to rise. it's time to buy and invest. business in bitcoin must be able to face the risks that will occur in order to get maximum results.

For sure they lost profit in 2018. The first quarter of 2018. they reported profits of $1.1 bln. However, its well-known competitor Nvidia provided documentation confirming their Q1 income being $1.2 bln.  So all people agree that the main reason for Bitmain’s financial losses is its investments in Bitcoin Cash, the asset, whose active supporter is Jihan Wu.