Largest crypto tycoons to raise billions with public-market offerings

Bitcoin Mining

Have you not upgraded your website to HTTPS yet? Upgrade NOW.

Google with its Chrome 68 update to show all HTTP websites as NOT SECURE. Avoid Google's penalty by installing an SSL Certificate. Get a DigiCert Standard SSL and secure your website at just $157/year. BUY NOW

ADVERTISEMENT
DAILY BRIEF
Get daily updates straight in your inbox.

World’s biggest cryptocurrency mining makers; Bitmain Technologies Ltd., Canaan Inc., and Ebang International Holdings Inc. plan to raise billions of dollars with Hong Kong IPO or initial public offerings. Three of the largest manufacturers of cryptocurrency are all facing the outlook of public-market scrutiny as they pursue stock listings in Hong Kong.

In 2018 the cryptocurrency and most of its other peers have lost more than half their value amongst the soaring regulatory scrutiny and concerns over exchange security flaws and in addition with market manipulation. The U.S. chipmaker Nvidia Corp claimed that in comparison to $100 million as expected by the analysts, the second-quarter sales to crypto miners totaled just $18 million.

Colette Kress, Nvidia’s chief financial officer expressed that she expects no contribution to revenues from cryptocurrency in the later months.

The largest three Chinese Bitcoin mining companies namely Bitmain, Canaan Inc and Ebang International Holdings design high-end computer chips which would be helpful for mining cryptocurrency, precisely bitcoin and then sell the equipment containing the chips. Other companies like Nvidia also sell specialized chips that are used for mining.

Benjamin Quinlan, chief executive of financial services adds: “The fall in the value of bitcoin from its apex has not been matched by an equivalent fall in the numbers of people mining it.” He remarked that since the start of this year the decline in the value of bitcoin is likely to weigh on these company’s investors.

According to Blockchain.info, since bitcoin’s December peak of $18,690, there has been a 64 percent down currently trading at $6,699.

Along with the decrease in price, the profitability of the mining, demand for mining chips and miners also decreases” – Wang Leilei, a consultant at financial services consultancy Kapronssia

And this along with the patchy performance by Hong Kong offerings causes additional worries for the investors.

Via: Reuters

Largest crypto tycoons to raise billions with public-market offerings