The leading cryptocurrency mining giant Bitmain Technologies falls short over keeping up with the vacillating market of crypto mining. The Bitmain, mainly providing services and products dealing in chips which serve as an integral part in crypto mining, might be another firm getting victimized by the effect of the cryptocurrency market crisis. The giant is also planning a release of its landmark IPO (Initial Public Offering) and it seems like the company has lost its edge over others in the market space as predicted by analysts Sanford C Bernstein & Co.
Bitmain is a Beijing-based company which is co-founded by a 32-year billionaire Jihan Wu. Recently it seems imperative that the panel points out some value propositions in order to keep themselves in the market and catch up with the pace, as per a report issued by Bernstein presented by Mark Li this Wednesday.
The TSMC (Taiwan semiconductor manufacturing company) manufacturers of chips designed in blocks of Bitmain must initiate some intervention and impose full prepayments done by Bitmain and expand their capacity ahead from all sole crypto-based products, say analysts of Bernstein.
“The USP and edge of Bitmain’s products are on stake. Whether or not the company would be able to survive competition,” the analysts wrote in his report.
On the contrary, last year While Bernstein termed Bitmain’s pace as a “massive success” and added in their column that the market space leader owned up to 85% percent of market share of all crypto mining chips. The company right now is facing neck to neck competition from various other firms like the Ebang International Holdings and Canaan which have also extended their IPO access to Hong Kong.
The demand for crypto chips in all these companies has however faced immense crisis ever since Bitcoin’s value fell to less than half in a year.
The company Bitmain is also a major operator of collectives of crypto mining. They have their eyes set on launching an IPO in Hong Kong which is expected to raise close to $3 billion USD, some of the experts convened last week.
The analysts’ report that Bitmain and its finances have piled up these days. Li added, that the Bitmain has also been involved in buying great amounts of Bitcoin Cash which poses a major risk to the company as the BTC cash value falls drastically.
Various cryptocurrencies have seen a major downfall in the market since the beginning of 2018. The Bitcoin cash value fell low to value less than 68% of the original since the initial week of May, and Bitcoin has witnessed a low of 30% in value, as reported in composite proving graph from Bloomberg. This definitely feels like the time when more improvisation and innovations in the field are required to gain a grip over the drop down.
The cryptocurrency market needs a listing which can successfully save the falling market. Witnessing falls in values of BTC, there have been many companies who have joint hands together to fight off this crisis.