Bitmain: Rumors Of Disastrous Q3 Circulating
In the cryptocurrency world, there are several companies that have been touted as the ultimate success stories, as they have reached valuations in the billions of dollars. One of those companies is Bitmain, which is the world’s largest Bitcoin miner, and one of the reasons why China has a certain amount of leverage in the cryptocurrency markets. The company has been so massively successful that it has actually added five people to the list of China’s richest individuals several months ago.
Bitmain is also looking to go public, and one of the figures that has been discussed is an $18 billion valuation. In August, various media outlets were reporting that the company was on its way to a staggering $10 billion in revenue, as well. The achievement is more stunning considering that its 2017 revenues were $2.5 billion, and its 2016 reasons were actually only $300 million.
Jihan Wu, co-founder of Bitmain
However, there are rumors that BItmain’s third quarter has not been a profitable one. Specifically, a Twitter user by the name of @btcking55 has claimed that it is a “complete disaster”, and that the company has lost over $700 million. The user attributed to the information to a leak in Bitmain records. For some context, the @btcking555 seems to tweet exclusively about Bitmain, and has over 4,000 followers. The tweet has over 300 retweets and 900 likes. You can find the tweet below:
We got leak of Bitmain Q3 numbers! COMPLETE DISASTER. The company lost $740 Million including losses on inventory and bitcoin cash! And this is not accounting for hash war costs! #bitmainipo @HKEXGroup
— BTCKING555 (@btcking555) December 4, 2018
There have been rumors swirling about Bitmain’s IPO and its decision to purchase Bitcoin Cash for some time now.
It does appear that the @btcking555 has nothing but negative things to say about Bitmain – so it could be that the reports are exaggerated. He also claimed that Bitmain has to pay Taiwan Semiconductor Manufacturing Company (TSMC), but is running out of cash. He concluded the tweet by suggesting that the company might be bankrupt soon:
Breaking: Our insider says Jihan is furious at BCH-SV for costing him massive in hash war. With Illiquid BCH collapsing, Jihan is running out of cash and has to pay TSMC.
TSMC CFO issued ultimatum, pay or we cut you off for good!
Bitmain maybe bankrupt by year end? #bitmainipo ?
— BTCKING555 (@btcking555) November 25, 2018