Ladies and gentlemen.
Bitmain seems to have run out of cash reserves as they spent all their money on BCash. They spent 70% of there operating cashflow from 2016 to q1 2018 on BCash. They have $880m of bcash on the balance sheet and only $100m of USD
As a result they are desperate to be bailed out. They are raising money pre IPO and will then do an IPO
@MrHodl if all of the info circulating is true, it really is an incredible story.
UASF confirmed bitcoin's bottom-up governance like never before, to continue betting on a top-down orchestrated system like Bcash is an incredibly risky move. They'll learn the lesson that was cemented in with the UASF, but almost a year too late!
@MrHodl I respectfully disagree- it is every VC-backed venture’s dream to IPO. It is not out of desperation. In fact, only the most successful companies ever get this chance. BCH is a very small part of Bitmain ($500m of a $18b company). BCH, in my estimation, was a bad bet for Bitmain. But the fact remains that they are enormously successful ($1b in profits in Q1 2018 alone).
@Dennis the important point is they didn't just buy loads of Bcash, but they spent most of their money on it so now dont have enough USD to run their business
@Dennis The problem is Bitmain is the largest company in a very hot space, big money from the likes of softbank and tencent love investing in the number one player. Bitcoin could raise many billions of usd and be totally bailed out for their mistake. Exposing this should be our top priority
@MrHodl I’m open minded, can you link to or provide reasoning for how they “don’t have enough money to run their business”? Jimmy Song said they are the “most profitable company in Bitcoin” https://medium.com/@jimmysong/just-how-profitable-is-bitmain-a9df82c761a
@MrHodl they made $1b profit just in Q1 2018. That’s more recent than the leaked ppt making the rounds.
@MrHodl this is showing their crypto assets up until March, which says nothing about their overall profit (total revenue - total expenses) during that period (which was $1.1b).
@Dennis @MrHodl Bitmain's valuation should give anyone at an existing chip manufacturer pause. It would be leaving money on the table if they didn't at least investigate entering a space with potential for huge profits and very few competitors.
Nvidia has been talking about crypto a lot lately, so I wouldn't be surprised if they were cooking something up.
If it's true they they have the overwhelming majority of their funds in BCH, it poses a huge problem. Obviously, they can easily spend USD without affecting the market price, but they can't do that with BCH. Cashing out even a fraction (maybe 1/8th) of it could cause a market crash in BCH that destroys half of their remaining investment.
Haven't really dug into the details on this one seriously, but if this is indeed the move they pulled, it was incredibly foolish. 😬
I just remember this @DavidVorik article and makes me think that shaking a bit Bitmain position is not bad at all 🤔
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