According to recent reports the cryptocurrency mining company Bitmain is filing for an initial public offering (IPO) potentially as high as $18 billion this September at a market capitalization of $40 – $50 billion. Ever since the news came out avid twitter users seem to be highly motivated to dig deep to find more details about the whole buzz.
Some users suggests that investing in this IPO would be a bad idea as they alleges cover ups behind the scenes by the team to make everything look good.
@MyLegacyKit on Twitter: Before IPO, a meltdown of $600M in #Bcash would be substantial. After IPO, $600M can be polished away much easier. Clever bookkeeping of @JihanWu. My prayers go to the fools that will invest in this #Bcash meltdown cover up scam.
Disclaimer: $600M is based on the March 31 figure of Bitmains’ BCH holdings, and today’s BCH price.
Presuming Bitmain kept accumulating BCH after March 31 for much higher prices as today, a #Bcash meltdown would cost Bitmain at least $1B and would wipe away all crypto profits.
@Excellion on Twitter: Why is Bitmain raising capital so fast & only showing Q1 results to pre-IPO investors? We’re well into Q3 now. The reason is Q2 was a disaster. Bitmain is sitting on a massive $1.24 billion USD in inventory & S9 prices dropped by ~85%! Q2 losses range in the $600-700 millions.
If $BTC prices stay same, Bitmain will continue bleeding as they went ALL IN ordering massive amount of wafers from TSMC. You don’t become a top 5 global customer of TSMC with smaller orders. Pre-IPO investors should push them to disclose their Q2 numbers immediately.
@fairness2all on Twitter: Pretty much bitmain IPO is a way to raise $ for #BCH with selling their actual BCH holding. They scammed many in crypto and now they are planning to scam average guy in public that has no clue about crypto.
It’s advised to do your research before investing your hard earned money.