A Hong Kong Stock Exchange spokesperson has called Bitmain’s purported hesitation around an alleged IPO “rumors,” depending on the report connected with a crypto media outlet on Dec. 17.
Several Blockchain and crypto news outlets had earlier reported that HKEX was “hesitant” for hosting Bitmain’s IPO as a result of market conditions about the overall cryptocurrency and digital assets mining business. Anonymous sources have allegedly claimed of the fact that Hong Kong exchange is amazingly diffident to actually approve these Bitcoin mining companies because of the industry is so volatile. Depending on the aforementioned sources, likely to actual risk how they could merely exist anymore in a year or two.
For many cryptocurrency mining firms, the plunge in cryptocurrency markets that followed 2019’s record highs has actually been hard to bear. Some have purportedly started selling off mining equipment that reached its “shutdown price” from the kilogram. Moreover, Bitmain has closed its Israel-based development center and dismissed local recruits, citing adverse market conditions.
Over the course of the past few months, the likely Bitmain IPO is actually the subject of some confusion and controversy. Several firms that were purported to be investors on the firm’s pre-IPO have acknowledged they are not involved.
Singapore-based firm Temasek was alleged to have committed $560 million dollars to Bitmain’s IPO, much like media reports in September. Temasek mentioned on an official statement that they’ve seen commentary about an IPO involving a digital asset company, Bitmain. The statement further added that Temasek just isn’t an investor in Bitmain, possesses never had discussions with, or perhaps an investment in Bitmain. They concluded by mentioning that the news reports regarding involvement into their IPO are false.
A Hong Kong lawyer and legal expert, Henry Yu told a crypto media outlet, from the month of August, which a Bitmain investor deck in Chinese used vague and misleading wording when listing investors to increase its rumored IPO. While in the Bitmain pre-IPO investor deck acquired with a crypto news outlet, DST Global is listed as an investor, with the declaration that the investment was “recently completed.”
DST Global confirmed towards news outlets going without shoes “has never have used Bitmain.” SoftBank, the main VC fund on this planet, has also denied its purported involvement with the offering.
News broke, while in the month of November, that Bitmain is facing a $5 million class-action lawsuit for purportedly mining crypto and digital assets for their own gains on its customers’ devices. Charge plaintiff, Gor Gevorkyan suggested the fact that the lengthy “initialization” steps involved in the ASICs sold by Bitmain uses the hardware mining at full power at users’ expense.