This article was originally posted on Ethereum World News - an independent news provider covereing Ethereum, Bitcoin, Ripple, Litecoin dApps, start-off ICO’s and the whole Blockchain Ecosystem. For more follow the link below.
Bitcoin Powerhouse Looking to Go Public… Again
According to a recent report from Bloomberg, Bitmain, one of the world’s largest crypto companies, still has plans to go public. The Bitcoin mining giant, best known for its ASIC machines, submitted a proposal to trade on public markets, namely the Hong Kong Stock Exchange, but was tacitly denied when its application lapsed. No explicit reason is known for the lapse, but reports suggest that it was due to the company’s inconsistencies in terms of profit, high valuation, and the day-to-day volatility of crypto assets like Bitcoin, leading to Hong Kong regulators to be skeptical.
This time, sources, “people with knowledge of the matter”, told Bloomberg that Bitmain is looking to sell their shares in the United States, which has seen an influx of technology/venture IPOs: Uber, Lyft, Beyond Meats, Slack, etc.
The China-headquartered giant intends to list documents with the somewhat anti-crypto United States Securities and Exchange Commission (SEC), which resides over IPO application, as soon as next month. Bitmain is currently consulting with advisors regarding the sale, which the sources say could raise anywhere from $300 million to $500 million.
With the resurgence in the Bitcoin price, there is likely to be demand for common investors to get their hands dirty. And with hash rate back on the rise, recently hitting all-time highs in fact, Bitmain may see some strokes of luck.
Bitmain Ex-CEO to Launch Matrix
Bitmain’s latest push to go public comes amid reports that Jihan Wu, the former chief executive of the Bitcoin outfit, is planning to launch his own China-based cryptocurrency startup, dubbed “Matrix”.
Per a report from The Block, which cited sources close to the cryptocurrency heavyweight, Wu’s startup will be launching in the coming 30 days. Matrix will purportedly be a multi-faceted crypto services business, which will focus on asset management, custody, and over-the-counter (OTC) liquidity provision for its institution-grade clients.
This confirms a March report from CoinDesk and Primitive Ventures’ Dovey Wan, who both stated that Matrix will be a services provider for crypto firms and those looking to delve into this space.
According to one source, Bitmain, in an odd twist of fate, will be Matrix’s first notable client. What’s odd about this is that Wu was rumored to have left Bitmain, of which he still owns a purported 20.5% stake in, on bad terms, with some stating on Twitter that he and his compatriots on the firm’s C-suite disagreed on certain subject matters.
Regardless, The Block’s sources state that Matrix will likely provide Bitmain with custodial and lending services, presumably for the mining firm’s large (and ever-expanding) Bitcoin stash and its expansion plans.
One familiar with the matter even stated that Matrix, with Bitmain in tow, may even become the “biggest OTC desk and asset-manager overnight,” noting that the desk of Wu’s new company should have access to liquidity not seen before in the industry.
Photo by Christopher Gower on Unsplash
The post Bloomberg: Bitcoin Mining Giant Bitmain is Pursuing IPO Plans Again appeared first on Ethereum World News.
To read more from Ethereum World News follow this link.