Bitcoin Cash (BCH) Jumps 20% After Bitmain Files for Its IPO
According to the IPO filing, which has a number of redacted sections, Bitmain had revenues of $2.8 billion in the first half of 2018 and currently has a 74.5% share of the global crypto mining equipment market. This dominance has ultimately driven the company to a staggering 328% yearly revenue growth and significant ownership of the global hashrates for both Bitcoin (BTC) and Bitcoin Cash (BCH).
The filing reveals that Bitmain holds $887 million in cryptocurrency assets, including Bitcoin, Bitcoin Cash, Ethereum, Litecoin and Dash making up roughly 28% of the company’s assets. This total accounts for the depreciation of $102.7 million over the last 6 months. Bitmain notes that a majority of these holdings were earned from the sale of mining hardware, as the company offers the option to pay in crypto at checkout.
According to previously leaked documents, Bitmain has 1,021,316 BCH, which it purchased at an average price of $869. While this represented a total holding of around $887 million at the time of the statement, BCH has since fallen in value to $520, which means that Bitmain has suffered a ~$350 million loss in a little over a quarter.
However, given that Bitmain still holds a sizeable stake in BCH, the Bitcoin fork stands to benefit from the upcoming IPO.
“It has been no secret that Bitmain holds massive amounts of BCH, but now that they are going public they are going to fill their already immense treasure chest with more money, and I’m confident a good chunk of it will go towards the development of BCH. Exciting times ahead for Roger and Jihan,” said Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet.
As a result of the IPO filing, the price of BCH surged 20% to over $542. Bitcoin Cash’s market cap is currently hovering around $9 billion, making it the 4th largest cryptocurrency in the AltDex 100 Index (ALT100).
More: Bitmain IPO Filings
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.