$3 Billion Bitmain IPO Application Officially Expired

The Bitcoin mining equipment giant Bitmain intended to raise over $3 billion but its listings application that we previously reported here on our crypto news website, was filed on September 26 last year and it officially reached its six-month expiration date.

Bitmain explained in a blog post that the company has a plan to reapply. Bitmain aimed to raise about $3 billion from the IPO at the Hong Kong Stock Exchange. The expiration is not actually a surprise. The Hong Kong Stock exchange stated in their reports that they are hesitant to approve the IPO application because there were questions about the sustainability of the business. HKEX also worried about listing a crypto company and the company collapsing shortly due to the high volatility in the sector.

The CEO of HKEX, Charles Li Xiaojia stated before that he is concerned about the fast entering of the cryptocurrencies in any business model that a company uses but by that time, Bitmain announced they want to diversify and enter the Artificial Intelligence sector and other tech areas.

In the blog post you can also read that Bitmain confirmed multiple management changes after Jihan Wu and Micree Zhan quit their position as CEOs. Both of them however, remained to be directors in the company. Currently, the CEO of the company is Haichao Wang.

Bitmain recently released its Antminer Z11 because of the bearish movement that hovers on the market for more than a year now with the goal of keeping the mining costs as low as possible. The new antminer is based on the 12nm ASIC design for which the company stated that it spends less energy by about 28 percent. It is still not certain whether the Z11 will increase the demand in mining equipment after the company issued a report where it shows that they loss about $500 million last year when the demand in mining equipment crashed.

According to South China Morning Post, Bitmain is considering going big in the artificial intelligence business. The company issued a report where it shows that only 0.1 percent of the $2.8 billion revenue for 2018 was made by non-crypto related businesses. So, the co-founder of the investment firm Kenetic Capital, Jehan Chu said:

‘’The real driver to Bitmain’s recovery will be their renewed focus on the core business of designing and producing leading edge mining hardware and also the ongoing institutional investment in crypto and blockchain.’’