Monday, September 28, 2020
Home News Bitmain’s Fall From Grace Could Spell Trouble For Bitcoin Cash

Bitmain’s Fall From Grace Could Spell Trouble For Bitcoin Cash

Crypto mining manufacturer Bitmain is undergoing a difficult time of late, and considering reports that they hold 1 million Bitcoin Cash, should BCH investors be extra vigilant?Bitmain’s Fall From GraceFounded in 2013 by Jihan Wu and Micree Zhan, Bitmain quickly established itself as the dominant force in the crypto mining equipment industry.Up until 2018, things were looking bright, having posted first-half profits of $743 million, and cemented its position as the largest manufacturer of application-specific integrated circuit (ASIC) chips.So much so there was talk of expanding the mining farm operation outside of China, and even plans to go public on the Hong Kong Stock Exchange.However, things don’t always go to plan, and given the frosty reception from Hong Kong regulators, the company let its IPO application lapse in March of last year.According to the SCMP, this decision will be revisited when the time is right.“We will restart the listing application work at an appropriate time in the future.”More recently, in a further sign of break down within the company, Bitmain has terminated its management agreement with Texas-based mining farm operator, DMG Blockchain.The site in Rockdale, Texas, houses 15,000 next-generation miners and opened only three months ago. This decision calls into question whether Bitmain will follow through with its plans to go public on the NASDAQ.DMG and Bitmain have mutually terminated the existing management agreement as cost and operational efficiencies have not materialized as planned.

This post was originally published on www.newsbtc.com