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

IMO, It should be our top priority to highlight this and not let them get bailed out, without investors and the public knowing they made this big error.

So all you bloggers, podcasters, twitterers... please highlight this topic as much as you can.

@dandarkpill Besides what Samson leaked, no. Hopefully it gets made public soon.

@MrHodl @dandarkpill We know their IPO will succeed but for how much? Here we've been speculating a few scenarios post IPO. Really engaging topic atm. Can't wait to hear @vortex podcast once it's uploaded.

@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

@Dennis Also don't forget that they fucked up the last 2 next gen chips fabs.

@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”

@Dennis They were. They used most of their money buying BCash.

@Dennis they've bled half a billion in the last 3 months alone.

@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 Yeah, that's not the full doc. More information should get released soon.

@MrHodl @Dennis Whether they truly are hurting or not, the IPO figure is going to bring a lot more hardware mfgs into this space. Bitmain's days are numbered, just like all who've come before it (Avalon, BFL, etc).

@btc @MrHodl I hope you’re right! Why do you think the IPO will bring in competitors?

@Dennis @MrHodl the pie is humongous and people will want their piece. It would be foolishly irresponsible of any existing chip manufacturer to not consider r&d in this space, considering how simple ASICs are vs general purpose computing devices

@btc @MrHodl I agree, there should be more competitors but I don’t know why the IPO changes anything. Why doesn’t nVidia or AMD compete? I have no answer.

@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.

@MrHodl it’s speculation, but a poor Q2 is interesting i suppose.

@MrHodl @Dennis

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 🤔

#Mining #Bitmain

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