[2019-11-12] Bitcoin Mining IPO Could be the New Gold Rush

[stompix]

Maybe it will lead to some people investing? Yeah, possible!
Goldrush? No way!

Comparing to any gold rush (there were hundreds of them) is a bit far fetched.
First, in bitcoin mining, you have some clear rules, you already know the reward, you already know how much you will mine.
Second, it's far easier to buy and store bitcoins if you're bullish on the price, unlike gold in large quantities, not even talking about wanting to get rid of it in case of an emergency.

Now if we leave the real goldrush scenario and we compare this event to other bubbles, like the real estate, the social networks madness, the now ongoing green energy, and electric cars investments, what it lacks is the volume, which is given by the same block reward that mining companies will get as revenue.

With an air travel company, you can expect with investment to triple the passenger numbers, Saudi Arabia's Aramco can double its production, but, no matter what you do here will be still only new bitcoins mined and the next year only half the number in less than 6 months..

The special thing about the mining rig manufacturing companies os that they aren't that affected when it comes to the bear market. Unlike crypto exchanges where they will always lay off some workers when they need to do coat cutting because of the bear market mining rig manufacturers don't since there will always be a demand for their product.

Nope, look at the hashrate last year, a bear market in full pawer, the hashrate was dropping seriously for the first time, nobody was buying anything. If we go again to 3000 with the amount of gear already sold and waiting for ROI we won't see even a batch getting sold.

[gentlemand]

Maybe it will lead to some people investing? Yeah, possible!
Goldrush? No way!

Whether miners make any money from their products isn't the concern of these companies. All they're in the business of is offering the means to do it which is a totally different proposition. I'd love to know how many machines sold made an actual return for their buyers.

[stompix]

I'd love to know how many machines sold made an actual return for their buyers.

It depends, but for a majority, I think it was actually profitable.
Leaving aside the outrageous prices in December-January, if you bought an S9 anywhere except that period and maybe 2-3 months before the rushed launch of the s15 and s17 you would have made a profit.
Same for a lot of other gear except some very late deliveries or ...butterflylabs stuff.

Of course,  even if we managed to get some data from multiple sources it will be totally wrong to use it for future planning, the price surely won't go up  x10 times in year, even if that happens there is a lot of unprofitable gear that would be turned back on grabbing a piece of the rewards, and so on and on.

And there is a new flaw in this model, it worked when the gear was 500-1000$ a piece and it was pulling at 1200-1400w like the s7 and s9 series, everyone could give it a try, the latest stuff is well above 2000-2500 and good luck running it in your apartment unless you really want to punish your neighbors. The s7 was advertised at 60 Db and the s17 at 80 Db and I can tell you for sure the numbers were/are pure bs.

[audaciousbeing]

This is going to be very interesting:
Two bitcoin mining giants are fighting for the US market.
Bitcoin mining giants Bitmain Technologies and Canaan Creative seem to have found a new area of competition — launching a U.S. IPO. Both companies are set to go head to head in trying to one-up the other in what could be the first-ever crypto-related public offering in the United States.

Both companies had a rough 2018 with bear markets and failed IPO attempts in China affecting them. Canaan's reported net revenue for the first 9 months of 2019 was less than a half of what it was the year earlier and Bitmain closing down its Israeli office and laying off 50 percent of its workforce.
Nevertheless ,their chip prepayments to TSMS have increased , so this could be a signal for recovery.
Read more here: https://bravenewcoin.com/insights/chinese-mining-giants-file-for-ipo

The important thing here is whether the SEC would allow them to list and two whether the public whom they are planning to raise the capital from are really ready for a mining business. A company into mining wanting to go public would be exposing itself to several scrutiny and even some bad mouthing that they themselves are not envisaging. One of those is from the environmentalist who believes that mining would lead to more damage to the ozone layer and since government and corporate organisations are moving towards green energy, I expect opposition from that angle which could be a valid point from those who are on the negative with crypto and its related activities.

[Theb]

I've just learned that before they announced that they are planning to have an IPO in the US they have relieved their co-founder, Micree Zhan, from all of his roles in the company. I believe that one of the reasons why might be he is against having an IPO in the US or at least he still thinks that this is not the best possible time to do it. Or even if there are other reasons why it would still involved them not agreeing on where the company will go in the future. With this news and about their possible connection against the arrest of their ex-employee, Zuoxing Yang, they are just making their chances of having an IPO in the US lower since they are under the microscope with the SEC and they'll be happy to find any kind of dirt just to use against them.