The largest manufacturer of Bitcoin mining equipment, Bitmain is currently undergoing some rough times, as Hong Kong’s stock market overseers remain reluctant to approve the initial public offering (IPO) application made by the company. This comes mainly due to concerns on the lack of any sort of regulations in place that can govern both the cryptocurrency and blockchain industry.
As stated in a report done by the South China Morning Post, Hong Kong Exchanges and Clear Limited (HKEX), are unlikely to give the green light to Bitmain, along with other similar firms, to launch an IPO, stating that the blockchain industry for the country is currently “immature.”
According to the rules on the public listing for Hong Kong, there would be a closed-door hearing meeting with the Listing Committee, who then give the final approval or rejection within six months of filing for an IPO. Its possible for a listing to lapse if the applicants don’t hear from the Committee during the six months period.
During the early half of 2019, Bitmain was able to raise over $400 million from a pre-IPO funding round that was led by Sequoia Capital as part of the businesses objective to raise over $1 billion before beginning efforts to secure an IPO. When September came around, the crypto mining firm officially applied to go public in Hong Kong.
The filing states:
“According to Frost & Sullivan, we are the largest global ASIC-based cryptocurrency mining hardware company in terms of sales revenue in 2017, accounting for a market share of 74.5%. We offer a variety of mining hardware equipped with proprietary ASIC chips under our Antminer brand.”
Hong Kong can be a pretty difficult place for any sort of cryptocurrency business to spread its wings. With the government cracking down on cryptocurrency in general and the uncertainty currently undergoing in the crypto market, its no wonder crypto-related businesses have a rough time down there.