Bitcoin mining giant Bitmain has recently been found to have lost over $500 million during its third quarter of 2018 thanks to the hard-hitting bear market at the time, as well as smaller miners coming back into the fray. Additionally, Bitmain’s dominance over the Bitcoin network has been steadily declining and some industry experts believe that these losses may be higher then we think.
Previously in September 2018, Bitmain had applied for the Hong Kong Stock Exchange (HKEx) for an initial public offering (IPO) and have recently announced an update on their financial results which clearly shows that the company earned a total of $500 million during the first nine months of the previous year, on slightly over $3 billion of revenue.
Although, Bitmain previously disclosed it had grossed profits of over $1 billion during the first half of 2018, meaning it would have a net profit of over $500 million during the end of Q3 last year meant that this quarter leads to them losing over half a billion dollars.
Bitmain has also previously reported that 2.8 million of revenues during the first half, so the $3 billion figure for the first nine months works out to third-quarter revenue just shy of $200 million.
At this current time, Bitmain hasn’t made any comments on the results being discovered by the community.
After having gone under new management as of recently, Bitmain only needs to provide the nine-months figures are this stage while under HKEx rules, which states that listing applicants can be no more than six months behind when reporting. Meaning that the public number for Q4 2018 will most likely be a long time coming.
Even so, Bitmain has unfortunately generated some very negative views on itself during the past couple of months, and it currently remains to be seen whether it will continue to endeavor with its IPO plans in the face of these recent losses. And even if they do decide to continue marching on, it remains to be seen if HKEx will allow it.