Analysis: Bitmain Dominance is Cracking
According to a recent analysis conducted by Mark Li, Bitmain, the mining firm based in Beijing, China and co-founded by Jihan Wu, 32, may have to report its inventory actual numbers due to the closing gap between the company and its competitors.
Analysts say the manufacturer of chips produced by Bitmain, TSMC, might have to submit a request for pre-payments in its entirety, and avoid supplying the company further on any crypto-related demands due to various reasons:
First of all, Bitmain has begun facing increasing, considerable competition from multiple competitors like Ebang and Canaan. The latter filed a billion-dollar IPO in HK last May.
Secondly, Bitmain’s products have seen an increase in pressure due to the industry’s general downtrend. The whole market’s capitalization decreased by $600B as Bitcoin lost upwards of 60% of its record high value.
According to Bitcoinist in a report last month, Bitmain detailed plans for their IPO on a valuation worth $14B prior to 2018’s end. Since the report, the mining firm’s outlook has appeared doubtful.
News reports appeared all over Chinese media in early August that promoted theories surrounding Bitmain’s IPO and how it may be gaining huge momentum due to recent investor interest. In contrast, two major crypto companies, Tencent as well as SoftBank, rejected the theories publically.
In addition, Bitmain received major attention due their BCH reserves, that would not be liquidized unless changes occur within the market before the date of their IPO.
In a post on Twitter, the CSO of Blockstream, Samson Mow, said that in accordance with Bitmain’s investor plans, the firm has sold the majority of their BTC for BCH.
The company has yet to reveal its 2nd quarter performance for this year, which has also caused many to speculate.