Losses Of Bitmain Crypto Company Almost Reach $740 Million
The potential losses of Bitmain, a manufacturer of devices for crypto mining, amounted to more than $740 million in Q3 2018, Bitcoinist reports.
The Chinese company has not yet reported on its financial situation for the period from July to September, but the data on serious losses was published implicitly on Twitter by the user BTCKING555, who monitors closely the state of affairs at the mining company.
BTCKING555 provided information on the estimated amount of losses, including working capital, and called the current situation at Bitmain "a complete disaster".
He further reported on one of the investors who addressed the company intending to get rid of its shares currently estimated at one and a half billion dollars, which is 90% less than in August 2018.
The Twitter user concludes that great difficulties are awaiting Bitmain in the future: creditors may refuse loans, demand for mining devices will fall, and an IPO on the Hong Kong stock exchange, which the company was determined to hold, may be challenged. Besides, investors received false information about the Bitmain financing as part of an IPO in October 2018.
A big down financing round can be a way out of the current situation, but in this case, the company will be controlled by venture investors.
As previously reported, Bitmain launched an index to track the data of 17 most liquid cryptocurrencies, which can be used by both institutional and individual investors.