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
@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” https://medium.com/@jimmysong/just-how-profitable-is-bitmain-a9df82c761a
@Dennis They were. They used most of their money buying BCash.
@MrHodl they made $1b profit just in Q1 2018. That’s more recent than the leaked ppt making the rounds.
@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.
@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.
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. 😬
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