Cryptocurrency miner Bitmain lets its HK IPO application lapse

28-Mar-2019 Intellasia | Reuters | 6:00 AM Print This Post

Bitmain Technologies, the world’s largest designer of products used for mining cryptocurrencies, on Tuesday let its application for a Hong Kong initial public offering (IPO) lapse as hopes for cryptocurrency companies to go public fade.

Bitmain’s application lapsed on Tuesday, six months after it was filed, the Hong Kong stock exchange’s website showed.

“We do recognise that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value. We hope regulatory authorities, media, and the general public can be more inclusive to this young industry,” the company said on its website.

Bitmain designs different microchips specialised for mining cryptocurrencies and for artificial intelligence applications, as well as manufacturing cryptocurrency and AI hardware, and managing crypto mining farms.

The reputation of cryptocurrencies, and particularly exchanges, has been hit hard by fears of price volatility and possible uses for laundering money alongside high-profile hacks and infrastructure failures.

Bitmain’s IPO hopes suffered the same fate as those of smaller cryptocurrency mining equipment maker Canaan Inc, which let its own IPO application lapse last year.

Hong Kong officials had raised questions about the sustainability of miners’ business models given the falling price of bitcoin, sources have said in the past.


Category: Hong Kong

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