The public offering (IPO) of the largest miner manufacturer Bitmain may not take place, as the Hong Kong financial market regulator, which must approve the IPO, recently raised concerns about the lack of regulatory framework for the blockchain industry.
According to the South China Morning Post, the Hong Kong exchanges and Clearing Limited (HKEX) may not approve the idea of Bitmain and other blockchain companies to conduct an IPO, citing the “immaturity” of the cryptocurrency industry.
According to public listing rules in Hong Kong, the Exchange Council will hold a closed hearing during which it will decide the fate of the IPO.
Today, the Chinese company Bitmain is the largest manufacturer of chips for cryptocurrency mining. During the 2017 cryptocurrency boom, the company reported revenue of $2 billion and net proceeds of $1.22 billion.
Earlier this year, the company received $400 million in pre-IPO funding, and in September of this year, the manufacturer filed to formally list in Hong Kong.
Bitmain has about a 67% market share in the mining equipment sales market, while the company generates approx. 60% of the computing power of the entire industry. Another miner manufacturer, Canaan Creative, also filed for a $400 million IPO, but it expired in November.
If approved, Bitmain's IPO could break all cryptocurrency records. However, given the unstable market situation and the lack of adequate regulations, this most likely will not happen in the near future.
According to www.ccn.com
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