Mar 26, 2019 (China Knowledge) - Bitmain Technologies, the world’s largest manufacturer of Bitcoin mining hardware has given up on its plans to go public on the Hong Kong stock exchange after mass lay offs and the company undergoing a restructuring due to a prolonged bear market in cryptocurrencies.
The company has since published a statement announcing the expiry of its IPO application which it filed during last year 26th September and said that it will restart its listing applications once market conditions are right in the future.
Bitmain which had the potential to become the world’s largest crypto-related IPO in the world took a hit last year when the price of Bitcoin plunged by 70% to wipe out about USD 500 billion in the market value of cryptocurrencies, hitting the company’s profitability.
At its peak in 2017, Bitmain had an estimated 75% of the market share in the crypto mining hardware industry due to its flagship Antminer S9 mining rig.
The company has since entered a restructuring with both co-CEOs Wu Jihan and Zhan Ketuan stepping down to be replaced by Wang Haihao who has extensive experience in chip design to lead the company in its foray into artificial intelligence chips and refocus on their core hardware business.
According to analysts, Bitmain’s key to recovery is its ability to refocus on its core business and continue producing cutting edge hardware for institutional players looking to enter the cryptocurrency market and stay ahead of rivals Canaan and Ebang.
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