Cryptocurrency giant Bitmain chooses Hong Kong for IPO

[likeprotocol]

https://www.reuters.com/article/us-bitmain-ipo/cryptocurrency-giant-bitmain-chooses-hong-kong-for-ipo-idUSKCN1M627L

Bitmain Technologies, the world’s largest designer of products used for mining cryptocurrencies, confirmed it was bringing its IPO to Hong Kong in what will be an important test of institutional investors’ interest in the crypto sector...

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[xIIImaL]

https://www.reuters.com/article/us-bitmain-ipo/cryptocurrency-giant-bitmain-chooses-hong-kong-for-ipo-idUSKCN1M627L

Bitmain Technologies, the world’s largest designer of products used for mining cryptocurrencies, confirmed it was bringing its IPO to Hong Kong in what will be an important test of institutional investors’ interest in the crypto sector...

This is brave move and damn shit profit they from this worst year. Just think and conclude it how the giant are making money on bearish market time also only small projects and service renders are getting buthurted with investing on their money.

However they are bringing IPO means it will be fine for Hong Kong government and for the people.

[KingScorpio]

https://www.reuters.com/article/us-bitmain-ipo/cryptocurrency-giant-bitmain-chooses-hong-kong-for-ipo-idUSKCN1M627L

Bitmain Technologies, the world’s largest designer of products used for mining cryptocurrencies, confirmed it was bringing its IPO to Hong Kong in what will be an important test of institutional investors’ interest in the crypto sector...

crypto is shifting away from the concentration around mining, and towards inteligent capitalism and project/development and funding actually, like it was the case with brave browser

[LeGaulois]

Why would a company that made almost 1 billion $ last want to share part of their 'profit making' company with the public?

Bitmain has lost half a billion dollar because of its chips production costs and over $400m just during the last three months. The only hope for the company is to get new investments coming. Bitmain is fucked for good it's now trying to find people to enroll in its fall

[KocaEfe]

Why would a company that made almost 1 billion $ last want to share part of their 'profit making' company with the public?

Bitmain has lost half a billion dollar because of its chips production costs and over $400m just during the last three months. The only hope for the company is to get new investments coming. Bitmain is fucked for good it's now trying to find people to enroll in its fall

You are right this is a necessary measure to save the company from bankruptcy. For example, their closest competitor Nvidia refused to produce video cards for mining and other companies also left the mining market. The only measure to stay in the monopoly is to get new money for the IPO and continue to develop its direction. This is the right decision. I'm sure the IPO will take place and they will collect the necessary amount.

[pawel7777]

Why would a company that made almost 1 billion $ last want to share part of their 'profit making' company with the public?

Bitmain has lost half a billion dollar because of its chips production costs and over $400m just during the last three months. The only hope for the company is to get new investments coming. Bitmain is fucked for good it's now trying to find people to enroll in its fall

So you're saying they just made ~$900m loss? Seems impropable for most efficient bitcoin hardware manufacturer. And how would you know that in the first place?
Can you provide source?

Are you saying they lied about that >$740m profit for the first half of the year in their prospectus? That would be a criminal offence, ridiculously easy to detect.

[franky1]

Why would a company that made almost 1 billion $ last want to share part of their 'profit making' company with the public?

Bitmain has lost half a billion dollar because of its chips production costs and over $400m just during the last three months. The only hope for the company is to get new investments coming. Bitmain is fucked for good it's now trying to find people to enroll in its fall

move away from reddit. its bad for your health.
instead read practical sources of information.
you wont learn anything from reddit or media that just say "based on a report that someone read"

its better to check and research the sources
the $400mill in the last 3 months is them getting investment
https://www.crunchbase.com/funding_round/bitmain-series-b--baa54731
they also re invested in other companies
https://www.crunchbase.com/organization/bitmain#section-investments
Sep 10, 2018   1000video
Aug 17, 2018   Lambda
Aug 8, 2018   TribeOs
Aug 2, 2018   Bizkey
Jul 31, 2018   PopulStay
Jul 26, 2018   MoonX
Jul 16, 2018   Block.one
Jul 13, 2018   NULS
Jul 11, 2018   DoraHacks

you do know that bitmain has not made loses. infact even before the IPO they have been making investments themselves in other companies. and have increased their hashrate.
https://data.bitcoinity.org/bitcoin/hashrate/6m?mining_pool=AntPool&t=a

the real funny thing is no one is talking about how BTCC is dying out and now sits in the low % of hashrate.. even samson mow jumped ship away from BTCC
https://data.bitcoinity.org/bitcoin/hashrate/6m?mining_pool=BTCC+Pool&t=a

[jseverson]

To clarify, they did lose money in Q2, but they have still been very profitable for the year. They haven't exactly been doing well as of late, which isn't very unexpected given the status of the market, but it's not like they're on the ropes or anything. There is a clear downtrend but they're not about to file for bankruptcy anytime soon --  even without the IPO.

As for their motivations behind this, could it be the impending arrival of competitors? News about a Samsung partner entering the mining ASIC industry came out recently. Maybe they want to maintain near-monopoly of the market? Bitmain doesn't have the best reputation so I'm sure lots of people will jump ship once a decent competitor comes along.

[pawel7777]

Some really interesting read from Katherine Wu, who is dropping some Chinese to English translation from IPO prospectus (400 pages long) on Twitter:

https://twitter.com/katherineykwu/status/1045059356994269184

Just had the chance to skim the (400+ page) Bitmain IPO document. Some interesting stats: + In the first half of 2018, Bitmain’s revenue was $2.845 billion, with a net profit of $1.123 billion. 95% of revenue comes from the sale of 2.56 million (!!) mining rigs.

...

TO CONCLUDE: I mean, personal opinions aside, Bitmain is one hell of a fucking company. These IPO documents contain an incredible wealth of information. Happy to answer anything specific if you have burning questions and I can look through the docs for you- otherwise, enjoy!

[KocaEfe]

move away from reddit. its bad for your health.
instead read practical sources of information.
you wont learn anything from reddit or media that just say "based on a report that someone read"

its better to check and research the sources
the $400mill in the last 3 months is them getting investment
https://www.crunchbase.com/funding_round/bitmain-series-b--baa54731
they also re invested in other companies
https://www.crunchbase.com/organization/bitmain#section-investments
Sep 10, 2018   1000video
Aug 17, 2018   Lambda
Aug 8, 2018   TribeOs
Aug 2, 2018   Bizkey
Jul 31, 2018   PopulStay
Jul 26, 2018   MoonX
Jul 16, 2018   Block.one
Jul 13, 2018   NULS
Jul 11, 2018   DoraHacks

you do know that bitmain has not made loses. infact even before the IPO they have been making investments themselves in other companies. and have increased their hashrate.
https://data.bitcoinity.org/bitcoin/hashrate/6m?mining_pool=AntPool&t=a

the real funny thing is no one is talking about how BTCC is dying out and now sits in the low % of hashrate.. even samson mow jumped ship away from BTCC
https://data.bitcoinity.org/bitcoin/hashrate/6m?mining_pool=BTCC+Pool&t=a

UM. Then I ask the question, why would they go for an IPO?
All for the same reason, they lack money?
You say that they have recently invested free money in other companies, which means 100% of the power and monopoly on the production of mining equipment.
However, this is unexpected )

[Baofeng]

Why would a company that made almost 1 billion $ last want to share part of their 'profit making' company with the public?

Bitmain has lost half a billion dollar because of its chips production costs and over $400m just during the last three months. The only hope for the company is to get new investments coming. Bitmain is fucked for good it's now trying to find people to enroll in its fall

You are right this is a necessary measure to save the company from bankruptcy. For example, their closest competitor Nvidia refused to produce video cards for mining and other companies also left the mining market. The only measure to stay in the monopoly is to get new money for the IPO and continue to develop its direction. This is the right decision. I'm sure the IPO will take place and they will collect the necessary amount.

Q1 for them was a good profit. But Q2/Q3 was bad because of the bear market. Plus they are a holder of Bitcoin Cash (BCH) and we all know that it losses ground as well so its a double whammy for them. They already investment on bitcoin mining farms outside of China so probably their reserves are really way below. And competition is slowly gaining grounds on them. So they have to make money right now so it makes sense for them to offer IPO. What's intriguing is how much they can raised with their offering.

[franky1]

UM. Then I ask the question, why would they go for an IPO?
All for the same reason, they lack money?
You say that they have recently invested free money in other companies, which means 100% of the power and monopoly on the production of mining equipment.
However, this is unexpected )

what you dont realise is this,

many people think pools start by buying their own rigs. mining. getting coin and then spending coin to buy electric and more rigs..

however
smart pools
get people who want to OTC (private trade) for bitcoin away from the market.
they hand fiat to miners. the miners then pre buy electric for a year of electric. and also cover costs of rigs. the pool then mines and they hand off coin to the investor privately at an agreed rate.
the pool has preplanned hashrate expansion and a contract of coin handback at a agreeable rate.
so the pools dont have to spend coins to pay for costs. and they get to keep a load of coins that they make above the quota they have to hand back OTC to investors

now
even smarter pools
realise why make investors pay the leases, electric and rigs. when the pools can make and own their own facilities. yes that includes getting their own power plants created. and their own ASIC manufacturing facilities.

and why give coins to investors when they can keep the coins in a inner circle of investors that want to reinvest or stay invested in a pool and increase the expansion even more.
EG why give out $400m of coins over months. when they can just give out a % of company ownership and the funds then stay in the group and they use it to expand further and faster.


but here is the thing about less smartr pools
BTCC didnt do OTC investor or planned expansion. they just mined and reacted to market prices.. BTCC also got bought out and have now an owner. but .. BTCC has dropped its expansion and is sitting at a lower % of network hashrate than before. even with new owners. lol

poor guys. no wonder samson mow took on another role within the portfolio groups subsiduaries. literally jumping out the mining pool subsiduary arm and into the PR department of another subsiduary.

but you will see the PR game play out to not look at BTCC and their owners and instead point fingers at bitmain. it all funny when you can stand back and see all the drama of PR distractions play out

[KryptoKai]

It's all about timing, if he had done this during a bull run then the amount of investment would be of the charts. The fact that this is taking place in a bear market means they must really be in trouble, he should know better than to sell off a crypto company in the current market conditions

[franky1]

It's all about timing, if he had done this during a bull run then the amount of investment would be of the charts. The fact that this is taking place in a bear market means they must really be in trouble, he should know better than to sell off a crypto company in the current market conditions

bull or bear doesnt affect them
they dont sell coins on the market as much as you think.

they have year long contracts of average prices.. they dont actually care about volatility..
im starting to think the report done earlier in the year was based on BTCC not bitmain as the propaganda thats coming out seems to resonate more towards what has happened to btcc not bitmain

[Herbert2020]

i sometimes wonder about if Bitmain wasn't demonized this much because of the incidents of last year, then would people still talk about Bitmain's revenues, their IPO, ... and whether they would still speculate about their bankruptcy and demise?!!!
it is interesting because Bitmain wasn't  created yesterday! they have been around a long time and only from mid 2017 they became the center of attention!

[LeGaulois]

@franky1

I don't use Reddit and I am not even sure to have an account there. I visit about once per trimester and not to find something related to crypto.
In the opposite, you look like the one going to Reddit. ^^. But no problem.
Check this PDF here which doesn't come from Reddit https://blog.bitmex.com/wp-content/uploads/2018/08/2018.08.30-Unboxing-Bitmains-IPO.pdf It comes from BitMex.

@pawel7777

No, excuse me I didn't phrase correctly. I wanted to say half a billion dollar including over $400m just during the last three months

[jseverson]

i sometimes wonder about if Bitmain wasn't demonized this much because of the incidents of last year, then would people still talk about Bitmain's revenues, their IPO, ... and whether they would still speculate about their bankruptcy and demise?!!!
it is interesting because Bitmain wasn't  created yesterday! they have been around a long time and only from mid 2017 they became the center of attention!

Probably? I mean, it's not just about Bitcoin Cash. They seem to have shady business practices, being accused of shipping used mining rigs as new. They also basically have monopoly of the ASIC market, and control a very significant chunk of the hash rate. They're very powerful -- too powerful, even, that they have a target on their backs.

[vintages]

Another great move, indeed it's exciting to say that cryptocurrency is really taking over Asia. Though,  I would have sworn that this innovation would be taken to Japan because of their total embrace and acceptance of cryptocurrency but still Hong Kong is another place for cryptocurrency activities to lay it tent. Hopefully, we would be hearing positive news from China.

[franky1]

@franky1 you look like the one going to Reddit. ^^. But no problem.

nah i just see a certain script repeated by many people saying the same thing like programmed drones.

yes bitcoin mine lots of btc. they have done for years. when they script pasting drones say they lost 400mill .. actual reports show they actually gained $400m AND made investments in other companies
when scripted drones say about a massive sell off of stock. the actual stats of hashrates show they are growing hash rate

.. the reason for the sell off of old stock is that they are now using new generation rigs. which the hashrate proves.
otherwise if it was a sell off because they cant afford to maintain rigs and need to cut down. the hashrates would decline. not incline.

however BTCC hashrate % has declined.
BTCC got bought out
and prominent names have publicly jumped ship

the real summary that those script drones should have concluded is the reason bitmain has so many bitcoin cash is because there are not enough OTC investors of summer 2017-18 that want to do deals to receive bitcoin cash under the same OTC contracts as with BTC
you know "no one wants bitcoin cash so bitmain end up keeping/hoarding it"

anyway bitmain have higher hashrate and been investing in other companies in the time period script drones have been saying the opposite.

yet find it funny the script drones havnt talked about BTCC which actually has took a turn for the worse even when getting bought out. but it wont fit their narrative.. would it

[franky1]

i sometimes wonder about if Bitmain wasn't demonized this much because of the incidents of last year, then would people still talk about Bitmain's revenues, their IPO, ... and whether they would still speculate about their bankruptcy and demise?!!!
it is interesting because Bitmain wasn't  created yesterday! they have been around a long time and only from mid 2017 they became the center of attention!

Probably? I mean, it's not just about Bitcoin Cash. They seem to have shady business practices, being accused of shipping used mining rigs as new. They also basically have monopoly of the ASIC market, and control a very significant chunk of the hash rate. They're very powerful -- too powerful, even, that they have a target on their backs.

OMG altcoins that use GPU
OMG bitcoin GPU mining in 2011-2013    AMD(ATi) have monopolised the market and are controlling 90% of hashrate
(note sarcasm)

P.S yes they sell alot of rigs. but one man cannot juggle 10 balls and control it all

though bitmain are very savvi. they actually lease facilities for private companies to manage. meaning the guys in charge of the pool and software are not jihan wu himself

but anyway. loads of people will continue with the "china control btc" scripts

anyways
funny thing
there are several facilities in different locations. this can be seen by just looking at the minted coin block reward receiving addresses variations. and yes one facility even uses bc1q addresses. which shows there is diversity even if those different facilities and management have been tagged under "antpool"
also antpool facilities are not just in asia..

just saying
people dont check the context and investigate the numbers.

as for the comment of them selling off old gear as new.
the S9 range was around $2k-3k in 2017. some batches sold off for $1250 (do you know why.. (hint second hand)
they done the same in june 2018. selling off for $850.. do you know why (second hand)
they actually announced they are selling their old gear because they are using new gear.

its not like they just discount things out of the goodness of their hearts...

if those that wanted clean unused gear should have waited for the full price batches
cant have a dustfree cake and eat at dustcake prices