The largest Bitcoin mining equipment manufacturer Bitmain is in our blockchain news of the day after having trouble with the Hong Kong stock market since it will not approve the company’s initial public offering after stating concerns about the lack of proper regulatory framework.
According to a report from South China Morning Post, the Hong Kong Exchanges and Clearing Limited will unlikely give the permission to Bitmain to launch an IPO because of the blockchain industry being ‘’immature.’’
There will also be a closed-door hearing with the Listing Committee which will decide finally whether the filing for an IPO will be approved or rejected in the next six months.
Bitmain was established back in 2013 by Micree Zhang and Jihan Wu in China and it is now said to be the biggest manufacturer of crypto-mining chips. The manufacturer recorded more than $2 billion in revenue and $1.2 billion in profit in 2017.
The company managed to raise about $400 million earlier this year from pre-IPO funding in an effort to raise $1 billion before securing its IPO. According to the public filing, the company noted:
“According to Frost & Sullivan, we are the largest global ASIC-based cryptocurrency mining hardware company in terms of sales revenue in 2017, accounting for a market share of 74.5%. We offer a variety of mining hardware equipped with proprietary ASIC chips under our Antminer brand.”
Bitmain has a 67 percent share in the market and the company is responsible for generating about 60 percent of the industry’s computing power. Bitmain’s IPO could set a record for a cryptocurrency IPO.
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