Bitmain Losses $500 Million Thanks to Collapse
Bitmain, one of the largest manufacturers of mining equipment in the world, suffered a loss of $500 million in Q3 2018 thanks to the collapse of the cryptocurrency market.
According to CoinDesk, Bitmain has published a financial report on the Hong Kong Stock Exchange (HKEX), where the company is going to hold an IPO.
According to this report, in just 9 months of last year, Bitmain received a net profit of $500 million. The company did not indicate the results by quarters. But the last year's report states that in the first half of 2018, Bitmain earned $1 billion in net profit.
So, to reach the result for 9 months, Bitmain had to incur a loss in Q3 2018 of $500 million.
Also in the new report states that the value of the company's crypto assets as of June 30 was $800 million. By the end of the 3rd quarter of 2018, assets value fell to $700 million.
Bitmain crypto assets included bitcoin, bitcoin cash, ethereum, litecoin, and dash.
In December last year, Bitmain announced the “adjustment” of its business model. The mining giant has cut half its employees. In addition, according to the South China Morning Post, the company is preparing to dismiss the founder and current CEO Jihan Wu. Bitmain denied this information.