Home / Tech News / Crypto mining giant Bitmain is reportedly getting a new CEO as its IPO plan stalls

Crypto mining giant Bitmain is reportedly getting a new CEO as its IPO plan stalls

Bitmain, the Chinese language crypto miner maker, seems prefer it has reached an attention-grabbing level in its pathway to going public. There’s been little heard since the company filed to go public in Hong Kong in September, however now it seems that a brand new CEO has been employed and its two founders are leaving.

That’s in keeping with a report from SCMP which — citing two sources — mentioned Wang Haichao, Bitmain’s director of product engineering, has assumed CEO duties following a transition that started in December. Founders Wu Jihan (pictured above) and Zhan Ketuan can be co-chairs with Wang described because the “potential successor.”

The publication mentioned that it isn’t clear when a brand new CEO can be named, or certainly whether or not an outdoor appointment can be made.

Bitmain declined to touch upon the report when requested by TechCrunch.

The corporate, which is claimed to have been valued as excessive as $15 billion, definitely seems to have stalled with its IPO following the submitting of an utility on September 26. That doc opened up a treasure trove of monetary info relating to the corporate, which is estimated to provide round three-quarters of the world’s crypto mining machines.

Certainly, Bitmain’s IPO submitting confirmed heady progress in income. The corporate grossed greater than $2.5 billion in income in 2017, a near-10X leap on the $278 million it claimed for 2016, whereas gross sales within the first six months of final yr surpassed $2.eight billion.

Nonetheless, there have been no figures for Q3 2018 and, since September, the worth of Bitcoin and different cryptocurrency has plummeted additional nonetheless, therein lowering the attraction of shopping for a mining machine and certain impacting Bitmain’s gross sales.

Bitmain noticed spectacular income progress because the crypto market grew, but it surely isn’t clear how the enterprise weathered the worth droop that affected the market in 2017

We reported that the corporate seemingly made a lack of round $400 million in that Q3 quarter. Issues are more likely to have been trickier nonetheless in This fall, as crypto costs dropped so low that mining firms in China had been reported to be promoting off machines as a result of the price of energy to mine was decrease than the reward for doing so.

Bitmain has diversified into non-mining providers, to its credit score, however its efforts to develop Bitcoin Money — a controversial fork of Bitcoin — have been controversial and certain loss-making, as well.

The value of Bitcoin Money is presently $162 on the timing of writing, that’s down considerably from round $2,500 one yr in the past. That doesn’t bode properly for Bitmain’s funding into the cryptocurrency, and it seemingly explains why the corporate has made layoffs, like others in the crypto space.

What a distinction 4 months could make. The problem for the corporate’s (obvious) new CEO is definitely a daunting one.

However Bitmain’s battle isn’t unprecedented. Simply this week, its closest rival — Canaan — was linked with a U.S. IPO. The corporate had deliberate to go public in Hong Kong final yr but it surely allowed its utility to run out as crypto market costs went south.

There’s lots to be careful for within the mining house in 2019!

Editorial be aware: The writer owns a small quantity of cryptocurrency. Sufficient to realize an understanding, not sufficient to vary a life.

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About Alejandro Bonaparte

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