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6 June 2023
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Bitcoin Mining Industry Could See Reduction to Two Firms

Crypto analyzing firm, BitMEX, has submitted a new report where they critically looked into the mining industry. Basing their report on the probability that three mining giants could IPO on US markets and if Bitcoin could witness a mining surge in China. The report further focuses on the fact that both aspects that the report was based on could suffer a lot if the current economic crunch continues to grow.

Bitcoin encounters IPO obstacles.

Two of the biggest miner producer around the globe, Ebang, and Bitmain, who coincidentally are the biggest ASIC miners producers are thinking about an IPO on US markets. They have tried numerous times without success in the past, with only Canaan managing to list on the Chicago boards exchange. The firm could only manage a meager $90 million during the offering and has witnessed a share price fall since then.

Reviewing Ebangs IPO filing with the United States of America, they suffered the same fate as Canaan after they witnessed a drastic reduction in sales, BitMEX noted. The review showed that Ebang accumulated losses that went over $30 million. Their revenue went down by 66% compared to Canaans 47% loss in revenue, while Ebang enjoyed a 38% net revenue more than Canaan.  Midaswms Review – Is This a Trustworthy Crypto Broker?

The mining industry is one fiercely competitive industry, witnesses low margin returns, and suffers from regulatory problems and Bitcoin volatility. BitMEX noted that MicroBT and Bitmain has a technological edge over their rivals in the industry. However, Canaan runs an open financial system that is accessible to the public, unlike Bitmain, Ebang, and MicroBT, who frequently report their own figures. BitMEX says that if Canaan is facing problems, then their other counterparts in the morning industry might be facing the same problem.

Bitmain facing control issues

In recent weeks, Bitmain has been suffering from power tussle between their two co-owners, which has affected the performance of the company. Jihan Wu and Zhan were involved in a physical fight, which made Jihan Wu send police to arrest Ketuan at his office. With the new development, a new IPO may not be readily accepted, with investors usually looking at the governance of the firm before investing. The long-standing issues between both leaders will affect them in big ways. 

“For a highly volatile and capital intensive industry like Bitcoin ASIC manufacturing, which can appear mysterious and opaque to traditional investors, perhaps it is not too surprising that these governance issues arise,” BitMEX said.

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