Bitcoin's big stock market debut is coming at a bad time.
Three of the world's top makers of cryptocurrency technology are planning to sell shares, giving investors a new way to bet on digital currencies. They're reportedly hoping to raise billions of dollars.
Unlike the dollar or the euro, which are issued by central banks, cryptocurrencies are based on computer code. Bitcoin, for example, is created and traded through the "mining" process in which computer algorithms solve increasingly complex math problems.
Bitmain, Canaan and Ebang, which are all based in China, make money by selling the high-tech parts and systems that power this mining. Together, they dominate the business.
But the three companies operate in a young, unpredictable industry and are planning their IPOs in Hong Kong in brutal market conditions. The price of bitcoin, which soared to nearly $20,000 in December, has since plunged by about two-thirds. Other cryptocurrencies like ethereum have plummeted, too.
"If the market price of cryptocurrencies suddenly falls ... demand for our mining hardware and cryptocurrency mining services will also drop rapidly," Bitmain warned potential investors this week.
See more:
https://money.cnn.com/2018/09/27/technology/bitcoin-mining-ipo/index.html
