Cryptocurrency miner Bitmain let the Hong Kong IPO application to expire

HONG KONG (Reuters) – Bitmain Technologies, the world’s largest designer of products for the mining cryptocurrencies, on Tuesday to let her apply for a Hong Kong initial public offering (IPO) will be void if the hope for cryptocurrency companies to go public fade.

Bitcoin mining computers are shown in Bitmain mining farm in the vicinity of Keflavik, Iceland, June 4, 2016. REUTERS/Jemima Kelly

Bitmain, the application will expire on Tuesday, six months after it is filed, the Hong Kong stock exchange website showed.

“We recognize that, despite the enormous potential of the cryptocurrency and blockchain industry, it remains a relatively young industry that proves its worth. We hope that the regulatory authorities, the media and the general public can be more inclusive of this young industry,” the company said on its website.

Bitmain designs of different microchips specialized for mining cryptocurrencies, and for artificial intelligence applications, as well as manufacturing processes cryptocurrency and AI hardware, and manage crypto mining farms.

The reputation of cryptocurrencies and, in particular, the exchange, has been hard hit by the fears of the volatility of prices and applications for money laundering in addition to the high-profile hacks, and infrastructure failures.

Bitmain’s IPO hopes suffered the same fate as that of smaller cryptocurrency mining-equipment maker Canaan Inc, which leaves its own IPO application course of last year.

Hong Kong officials had raised questions about the sustainability of the miners’ business models, given the falling price of bitcoin, the sources have said in the past.

The crypto market peaked at the end of 2017, when the trade volumes increased and bitcoin, the biggest cryptocurrency, reached a high just above the $20,000. Bitcoin, the price has fallen from more than 80 percent since then, and trading volumes slumped.

Bitcoin is worth $3,898.12 on Tuesday.

The lapse of a Bitmain and Canaan the IPO applications, let alone cryptocurrency mining-equipment maker Ebang International Holdings in the running for a mention in the financial centre. Ebang refiled the application in December to prevent decay.

Reporting by Julia Fioretti; Editing by Shreejay Sinha

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