Bitmain to Go Bankruptcy and Stop IPO? Rumors Amid BCH Hard Fork Controversy
Bitmain, the world’s dominant bitcoin mining hardware maker, is working smoothly on its looming IPO, according to source close to the company, in response to the recent claims that the company is on the verge of bankruptcy and stopping the IPO.
The clarification came on the heels of claims about Bitmain to go bankruptcy published on bitcoin news site Coingeek and tweeted by a twitter user called “Btcking555”.
Controversies surrounding Bitmain abound since the company sought to go public this August. First big investors like Japanese telecom giant Softbank, Chinese internet conglomerate Tencent and investment powerhouse DST Global denied their involvement in its pre-IPO funding, and later its financial information exposed the company dumped massive bitcoin for Bitcoin Cash which roused the suspicion of its colluded manipulation of BCH and financial instability with over 1mln BCH on hoard.
It seems that the company is indeed being panned for the recent price drop in cryptos and the rollout of more powerful miners from competing rivals while it still counts on Antminer S9 released two years ago with a massive inventory worth $1.24 billion.
A Twitter user called “Btcking555” claiming to have sources at Bitmain has been tracking and active in disclosing details about Bitmain’s IPO and its financial situation, some of which were proved to be true.
Bitmain BCH Story 2: As part of this “dumbest move in crypto history” Jihan used big chunk of his profits selling S9s and his remaining BTC balance to support BCH. However now with no new chip, only making losses on S9s and no BTC, BCH is left with no Bitmain support
— BTCKING555 (@btcking555) September 13, 2018
Claims recently went far as “Bitmain is to go bankruptcy”; “Bitmain will kill the IPO and try to regroup. Problem is their tech does not work anymore and they are failing on their reckless untested wormhole forking plans.”
— Calvin Ayre (@CalvinAyre) September 19, 2018
Regarding these, Bitmain has been keeping silent given the company is in the quiet period during which insiders of the would-be public companies are restricted from releasing new information around an IPO.
The source said Coingeek and Btcking555 are “making up stories” to attack Bitmain due to the BCH hard fork controversy between nChain and Bitcoin ABC, suggesting all their unfounded claims are rumors.
As Coingeek, running a crypto news site as well as the largest BCH mining pool, is a large support of nChain, while Jihan Wu, founder of Bitmain, is a promoter of Bitcoin ABC, and he has rebuked Coingeek for their “sci-fi” news reports for many times.
Coingeek hires fiction writers, but not news reporters. pic.twitter.com/vz3vGtvH9q
— Jihan Wu (@JihanWu) August 30, 2018
As for Btcking555, as a user commented, “Been loving the BitmainIPO drama you’ve been covering… why are you so against it?”
— Dean Pham (@taperdean) September 21, 2018
It remains to be seen whether Bitmain’s IPO will go smooth. Bitmain still refused to comment on that at the time of this writing, but the bankruptcy claim seems unfounded as the company recently launched a $50 million equity fund to invest in BCH projects and will sponsor the Houston Rockets NBA team through the company’s Antpool brand for the next NBA season.