Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Gadgets & Apps

Plans for blockbuster cryptocurrency IPO shelved amid bitcoin slump

Bitcoin experienced astonishing growth in 2017 to peak at a record US$19,500 by the end of that year./AFP

Hong Kong, China, Mar 27 – The world’s largest maker of cryptocurrency mining chips has shelved plans for an ambitious initial public offering in Hong Kong, becoming the latest victim of bitcoin’s price plunge.

Bitmain Technologies said Tuesday it has allowed its IPO application to lapse, six months after it was initially filed in September aiming to raise up to $3 billion, according to Bloomberg News.

Under Hong Kong’s listing rules, applications expire half a year after filing.

“We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value,” the Beijing-based company said on its blog on Tuesday.

“The bear market at the end of 2018 brought both challenges and opportunities that Bitmain will work hard at addressing in 2019,” it said, adding it would restart its application “at an appropriate time in the future”.

Bitcoin experienced astonishing growth in 2017 to peak at a record US$19,500 by the end of that year.

But investors feared a speculative bubble and it has since crashed to stand at about $3,980 per unit following months of volatile trading.

The virtual bubble burst — followed by what has become the worst slump in years — has made mining operations practically unprofitable.

Bitmain’s co-founders Micree Zhan and Jihan Wu became the richest cryptocurrency billionaires to appear on a list by Hurun Report last year of China’s wealthiest people.

The entrepreneurs have stepped down from their roles as CEOs and were replaced by Haichao Wang, the statement said, but it added the pair would continue to guide the company’s strategic development as directors.

Advertisement. Scroll to continue reading.

In addition to a leadership reshuffle, the announcement also alluded to layoffs made at the end of last year and described them as “a difficult but necessary decision”

It did not say how many employees were affected.

Other manufacturers have faced similar hurdles recently.

Bitmain’s rival Canaan saw its listing application expire in November.

Mining chip maker Ebang is still pursuing a Hong Kong IPO after refiling its application in December.

Click to comment

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...


NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...


NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...


NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...


NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...