Bitmain Technologies that deals in Bitcoin mining hardware lost around $500 million in the third quarter of 2018, says CoinDesk. This happened amid a situation of the bear market for the cryptocurrency.
The Beijing-based company recently updated the Hong Kong Stock Exchange (HKEX) with the latest report on its last year’s financial numbers. The stock exchange is going over the company’s application for IPO filed in September.
The financial update revealed revenue of $3 billion for a period of January to September last year and a profit of around $500 million for the same period. The update did not disclose the revenue on quarter-basis. But if we believe the disclosure by Bitmain, its gross profit for the first 6 months of 2018 was around $500 million that leaves it with a net loss of roughly $500 million for the third quarter.
Bitmain also disclosed that during the first half of 2018, its gross revenue was somewhere around $2.8 billion. Deducting it from the $3 billion figure for January to September, we arrive at the third-quarter revenue amounting to roughly around $200 million. All this indicates that the company has faced a consistent decline in the revenue and profits over the several past years.
Bitmain refused for saying anything in relation to this article, mentioning its under-review IPO application. However, Bitmain had indicated that the company is facing a difficult phase owing to a large number of layoffs and office shutdowns across the globe that has impacted its every branch.
Due to the fall in crypto prices the company’s businesses related to the production of mining hardware have suffered a lot.
The update reported to the stock exchange revealed that there is a considerable drop in the value of the crypto holding of Bitmain. The value fell from $800 million at the end of June to around $700 million as of Sept 30 leading to an overall decline of $100 million in the market price for the concerned period.
The IPO application filed by Bitmain suggested that the company’s crypto holdings mostly consist of Ethereum, Litecoin, Bitcoin Cash, Bitcoin, and Dash cryptocurrencies. However, individual holding amount was not revealed.
As per CoinMarketCap, the value of all the cryptocurrencies that the company holds has declined by 50%. Especially, the price Bitcoin Cash has declined by 70%.
The public will not have access to the financial update by Bitmain, unless it decides to go to a listing hearing preceded by approvals from Hong Kong Stock Exchange before 26th March 2018 which is the window closing date.
The Bitcoin miners generally face a lot of uncertainties regarding their profit-sustainability which is why the chances of HKEX approving the application of Bitmain seem to be really skimmed.