Bitmain suffers significant losses due to its large position on Bitcoin Cash

Chief strategic Director of blockchain company Block stream Samson MOU published documentation for potential investors of the largest producer of mining equipment Bitmain. It turned out that the company sold most of the bitcoins and seriously increased its position on Bitcoin Cash.

Given the ongoing deep correction in the digital currency market, Bitcoin could have lost nearly half a billion US dollars on the BCH rate decline over the last three months. The documentation for possible IPO participants includes the average price of BCH at $869 (March 31). According to CoinMarketCap, as of 10: 27 UTC, on August 13, the average asset rate was $587.

MoE stressed that the upcoming Bitcoin IPO is very risky for investors, as the company purchased BCH, without even knowing about the critical vulnerability in the Protocol, which was discovered by Bitcoin Core developer Corey fields.

Samson MOU also noted that potential investors in the IPO is only to demonstrate the performance of the first quarter, profit Bitmain which amounted to $1 billion. He believes that the second quarter of intentionally hiding because of the significant losses due to increasing positions in Cash and Bitcoin prices falling Antminer S9 85%.

Most estimates losses Bitmain in the second quarter to $600-$700 million. He added that if the price of bitcoin will remain at current levels, the situation for the company, only worse, because you have already ordered a huge batch of semiconductor materials at TSMC.

Holding a major IPO, in his opinion, is the only way for the company to improve its position at the expense of investors who should not guess that Bitmain assets in the current situation in the market are extremely illiquid.

Crypto Herpes Cat also suggested that Jihan Wu saw opportunities in the cryptocurrency market in the near future, and that a new round of growth could begin in the run-up to the IPO.

A well-known crypto enthusiast Whale Panda published the full documentation of the company for potential IPO participants. However, it is only available in Chinese.

I remind that Bitmain intends to raise $18 billion in the IPO on the Hong Kong stock exchange, after which the company's capitalization can reach $40-$50 billion.