Largest manufacturer of equipment for mining Bitmain in the IPO, prepared for investors, docqment reflecting the current financial position of the company. This information was shared to the main strategic Director blockchain company Blockstream Samson MOU.
According to the Bitmain pre-IPO investor deck, they sold most of their #Bitcoin for #Bcash. At $900/BCH, they’ve bled half a billion in the last 3 months. If Bitcoin Core devs didn’t disclose the vulnerability Bcash, it could’ve wiped a billion dollars off their balance sheets. pic.twitter.com/9BMywdvvby
— Samson Mow (@Excellion) August 11, 2018
As it turned out, the company three months ago to sell most of their bitcoins for the BCH, at the rate of about $900. From this it follows that Bitmain have gone into the loss of nearly half milliage dollars for the period.
MOU said that this event indicates serious risk to the investors of the IPO. Even if not to take into account the falling prices of the BCH, a Bitcoin Core developer Cory fields previously discovered a critical vulnerability in the Bitcoin Protocol for Cash, which at the time of sale Bitmain had no idea. This speaks to the inept investment strategy of the company that may adversely affect its investors.
In addition, the MOU has noticed another fact: potential investors IPO show only the profit of the company for the first quarter, however, was the second and started the third. MOU believes that the results of the second quarter was much sadder: because of a failed position on BTC and falling prices Antminer S9 85%, Bitmain could go to a loss of $600-700 million, He added that all profits for the first quarter could cover the losses of the second.
Recall that Bitmain is going to attract $18 billion in the IPO. If she raises the funds, its market capitalization could grow to $40-50 billion.