Bitmain Says IPO Application Was Allowed to Expire on Purpose


Speculation ran rampant after an update on the Hong Kong Stock Exchange (HKEX) website showed that the IPO application of Chinese crypto mining giant Bitmain has expired.

In response, Bitmain published a blog post on Tuesday where it explained the application expiration was purposeful as the company wants to continue focusing on product development and its customers in 2019 while the crypto market continues to mature.

“Bitmain’s listing application to HKex in September 2018 has reached its 6-month expiration date,” stated the Bitmain team. “We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value. We hope regulatory authorities, media, and the general public can be more inclusive to this young industry. We will restart the listing application work at an appropriate time in the future.”

While waiting for the crypto market to mature from an institutional investor perspective is valid, Bitmain has been suffering from a balance sheet that has been deteriorating throughout the ongoing bear market.

As we previously reported, an updated filing with the HKex showed that the company lost about $500 million in the third quarter of 2018. It was also revealed that co-founders Jihan Wu and Micree Zhan, who’ve served as Bitmain’s co-CEOs, have taken a step back from the company’s day-to-day management.

In order for Bitmain to refile for its IPO, the company will be required to provide additional financial records beyond what was included in its initial filing.

More: 2019’s Focus is on Customers
Similar: Recent Filing Reveals Bitmain Lost $500 Million in Q3 2018

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.

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