According to reports, a spokesperson from Hong Kong Stock Exchange (HKEX) has made a reply to an email calling Bitmain’s IPO hesitation as “rumors” on 17th Dec. This happened when Cointelegraph asked HKEX to give verification and details on the crypto mining firm’s IPO status. The spokesperson responded the email by saying “HKEX does not comment on rumors.”
Different crypto media and blockchain experts have previously reported about Bitmain hesitancy to host its IPO seeing recent decline in crypto prices and market conditions revolving crypto mining business. Other anonymous sources have also claimed that “Because of the volatile nature of the crypto industry, Bitmain is very hesitant to approve Bitcoin (BTC) mining companies. The risk is also there that they might shut down in a year or two.
For many crypto mining firms, the decline in crypto prices following strict regulation from different government has made it really difficult to survive. Many of the firms, startups have reportedly begun selling off mining equipment at huge discounts or at the base price. Looking at current market conditions, Bitmain has also wrapped up its Israel-based development center and dismissed local employees.
Over the course of the past few months, Bitmain’s potential IPO has been the subject that has been involved in many controversies and confusion. Several companies that were rumored to participate and act as investors in the firm’s pre-IPO are now rejecting the statement of having any involvement with the company.
In September this year, Temasek, Singapore-based firm was reported to have a commitment of contributing $560 million dollars to Bitmain’s IPO. Temasek stated “We’ve seen commentary about an IPO involving a cryptocurrency company, Bitmain. Temasek is not an investor in Bitmain and has never had discussions with our investment in Bitmain. News reports about our involvement in their IPO are false.”
Earlier in August this year, Henry Yu, a Hong Kong lawyer, and legal expert while discussing Bitmain’s rumored IPO told Cointelegraph that while listing investors ahead of its IPO, Bitmain investor deck in Chinese used vague and misleading wording. DST Global was listed as an investor along with claims that the investment was “recently completed”, in the pre-IPO investor deck of Bitmain that were acquired by Cointelegraph.
DST Global later made a confirmation that the company has never invested in Bitmain. SoftBank, The largest Uber shareholder, also denied all the allegation of having an involvement in the offering.