Over the past couple of months, a giant of bitcoin mining equipment has not only reported a loss of $ 500 million after several years of consistent earnings but has not passed the rate.
Although recent changes in the leadership generated hopes that the Bitmain ship could be turned to the right path, it said that China plans to ban crippling mining as a major blow
That's why the management of Bitmain is likely to spend sleepless nights in the near future: With the crippling trade and initial coin offers, China was the largest market for equipment for the production of bitcoins in the world. g the hardware will definitely fall.
Bitmain restructuring plans were missed
As part of ship repair plans, Bitmain was on the verge of serious cryptaturrency investments in China. It was not easy with China, which owns one of the cheapest electricity all over the world
In particular, Bitmain intended to install 200,000 units of cryptographic hardware in China worth 80 to 100 million dollars.
News of the ban, however, will upset those plans, and Bitmain will have to jump to other places for cheap electricity. Or cancel your expansion plans altogether.
The gigantic mining apparatus closed other operations outside of China when it looked inside
What can only be called a miserable term, the restructuring that Bitmayne had seen in the past few months saw him diminishing his global influence, since he was guided by its internal operations.
This included the cessation of operations in Texas and, consequently, investments in the amount of $ 0.5 billion. The investment would turn the Lone Star State into the largest cryptographic foreign operation in the United States.
Similarly, Bitmain also cut its operations in the Netherlands earlier this year. And last December, Bitmain closed the development center, located in Israel.
IPO Bitmain now looks even more unattainable
As Bitmain was waiting for a decision on its unsuccessful public offer, Charles Li Xiaojia, general manager of Hong Kong Stock Exchange, where he planned to transfer Bitmain, warned that consistency and stability were the key to a successful process .
"To be Sustainable": General Manager of the Hong Kong Stock Exchange to Test IPO-Trying Crypto-Giant BitMay https://t.co/ September 24, 2019
Now that the threat of losing one of its biggest markets by one collapse is Bitman's odds for the IPO were even more dubious. This is due to the fact that the ban only attracts attention to the uncertainty and instability of the business in which Bitmayn is located. Even after Bitmain is shrinking, its Chinese rivals do the opposite.
Ebang, one of China's rival Bitmain, has already announced plans for a sharp expansion this year. In 2019, it is planned to produce more than 400 thousand block block processors.
Canaan Creative, on the other hand, was busy looking for funding, no doubt both for financing growth and for operations. According to Securities Times, Canaan Creative recently raised several hundred million dollars.
Is all this death and gloom for Bitmain? Not at all. On the other hand, it may be good for the giant mining industry Bitcoin. The ban can increase the price of Bitcoin and thus increase interest in crypto-currency development. This would increase the sales of hardware for mining. Beatmane, however, will have to fight hard in the market in the eyes of brave rivals.