Bitmain, the bitcoin mining giant has reportedly lost over $500 million during its third quarter of 2018, majorly due to the crypto winter that has been plaguing the markets. Along with the fall in earnings, Bitmain is also losing its dominance over the Bitcoin network steadily, which according to experts will affect its chances for an IPO.
Bitmain applied for an initial public offering (IPO) at the Hong Kong Stock Exchange (HKEx) during September 2018. The firm recently announced an update on their financial results stating that it earned a total of $500 million during the first nine months of the previous year, on slightly over $3 billion of revenue.
In the first half of 2018, Bitmain previously disclosed that it grossed profits of over $1 billion, implying that it would have a net profit of over $500 million during the end of Q3 last year and that in the last quarter losing over half a billion dollars. Previously, Bitmain reported that 2.8 million of revenues during the first half, so the $3 billion figure for the first nine months works out to third-quarter revenue just shy of $200 million.
As of now, Bitmain hasn’t made any comments on the results being discovered by the community. Bitmain went under new management recently and only needs to provide the nine-months figures at this stage while under HKEx rules. The rule stated that listing applicants can be no more than six months behind when reporting, implying that the public number for Q4 2018 will most likely be a long time coming.
However, Bitmain, unfortunately, generated some very negative views on itself during the past couple of months, and it currently remains to be seen whether it will continue to endeavor with its IPO plans in the face of these recent losses. And even if they do decide to continue marching on, it remains to be seen if HKEx will allow it.
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