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Troubles keep chasing the crypto mining giant Bitmain. As long as cryptocurrency prices continued to rise a year ago, the company was blossoming; but as the entire crypto market plunged in 2018, mining profitability has declined accordingly and drastically. So after a barrage of lawsuits and firing half of its workforce, the mining firm now faces new obstacles.
According to the Chinese media outlet Odaily, Bitmain’s CEOs Micree Zhan and Jihan Wu will soon leave the China-based company in what appears to be a forced resignation after a lot of pressure from the inside. Odaily reports that already since 2015 Zhan has been skeptical about his management abilities and now finally decided to step down for the sake of the company. Odaily further elaborates that Bitmain is already in the midst of a transitional period, and a new mysterious man called “Wang” is gradually taking the helm; there are no more details about the enigmatic Mr. Wang.
The report also reveals that employees of the company are not too particularly satisfied with the current double-CEO system, and that they are not optimistic about the company’s future going further with such leadership mechanism. When asked to comment about these developments, Bitmain’s marketing director Jiang Zhihua released the following brief statement:
Thank you for your attention, please do not comment, please refer to the prospectus.
And as if those problems weren’t enough, the South China Morning Post reports that Bitmain’s anticipated initial public offering (IPO) in the Hong Kong Stock Exchange is now in serious jeopardy too. The report cites two sources informing that the market’s regulator is reluctant to approve the IPO – at least not until more standardized cryptocurrency legislation will come to light. This might turn out to be a huge blow to the crypto mining giant.
The reluctance by the regulator and market operator, which provide policy advice to the Listing Committee of the Hong Kong stock exchange (HKEX), could be an insurmountable hurdle in the US$3 billion IPO application by Bitmain Technologies, the world’s largest maker of cryptocurrency mining computers.
The Listing Committee should relay its final answer until March 26, 2019. Right now, the prospect of raising $3 billions doesn’t appear too bright; but the crypto industry is truly unexpected and highly volatile, so perhaps we may see, yet again, another incredible bounce back up by the Chinese mining titan.