Bitmain Abandons its IPO Plans

Bitmain Abandons its IPO Plans

 
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Bitmain Technologies, the largest producer of hardware for cryptocurrency mining, has abandoned plans to go public, the company announced. The company had let its application, submitted six months ago to Hong Kong stock exchange, expire on Tuesday.

In a blog post titled “2019’s focus is on customers” on its official website, the company confirms its “listing application to HKex in September 2018 has reached its 6-month expiration date”.

“We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value. We hope regulatory authorities, media, and the general public can be more inclusive to this young industry,” the statement notes.

Although it abandoned plans to go public, Bitmain insists that the preparatory period for IPO has made the company “more transparent and standardized”.

Read more: Bitmain Co-Founder Set to Launch 100,000 ASIC Mining Operation

According to the statement, the decision was made in late 2018 when the company decided to adjust its hiring policy towards “cryptocurrency and artificial intelligence (AI) chips”. In the same time period, Bitmain introduced Mr. Haichao Wang as the Chief Executive. In the end, the hardware producer adds that it hasn’t completely dropped its interest in Initial Public Offering (IPO).

“We will restart the listing application work at an appropriate time in the future.”

Recently, Newconomy reported about Bitmain introducing a new miner for ZCash (ZEC). It apparently generates three times more hashrate than its predecessor while spending 60% less electricity.

The Hong Kong-based company, founded in 2013, is considered to be the second biggest manufacturer in China and a leader in the production of integrated circuits for cryptocurrency mining, mainly thanks to its Antminer brand.

Read more: Bitcoin Cash Price Analysis: Bitmain Boost their Hash, BCH/USD May Drop Below $200