Bitmain’s IPO saga continues to unravel throwing surprises at every turn. In the latest turn of events, CoinDesk has reported that the crypto mining giant lost nearly $500 million in the third quarter of 2018. Bitmain revealed the details in an update on its financial results provided to the Hong Kong Stock Exchange (HKEX) which is reviewing its application for an initial public offering (IPO).
As per the update, Bitmain earned nearly $500 million in the first nine months of the last year on $3billion of revenues, sources familiar with the situation told CoinDesk. The filing which is not public has not broken down the results by quarter.
However the crypto mining giant had previously disclosed that it had earned profits of $1 billion in the first half of 2018 and if that figure is subtracted from the $500 million we get a net loss of nearly 500 million for the third quarter.
These latest figures show the company’s reversal of fortunes for the first time after several years of phenomenal growth documented in the IPO application filed in late September last year.
According to HKEx rules, the company is to provide only 9-month figures at this stage. The rules says that that applicants can be no more than six months behind on reporting.
The figures show that Bitmain is going through some tough times and the bearish crypto market has started to take its toll on the crypto mining giant which is finding it hard to sustain its momentum amidst growing concerns about the state of the cryptocurrency market. Starting last year the company decided to shut down its offices globally and cut down its work force in order to be economically viable.
In the month of January the company chose to close down its Amsterdam arm. According to local reports, Bitmain has also stopped its operations in the Rockdale mining site. The mining firm is shutting down several branches and is also laying off many employees from their local offices located in China.
“As we build a long-term, sustainable and scalable business, we are making adjustments to our staff and operations. This includes the decision to close our Amsterdam and Israel offices,” the company had explained.
The financial update also shows that Bitmain’s crypto holdings dropped in value from more than $800 million as of June 30 to less than $700 million at the end of the third quarter.
As of now the financial update will not be revealed to the general public unless before the six-month window draws to a close on March 26, sources close to CoinDesk said.
Right now, there’s no clarity regarding the fate of Bitmain’s IPO and many say that HKEx is reluctant to approve applications as there is uncertainty and apprehension regarding the sustainability of these businesses.
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