Bitmain on brink of bankruptcy - page 2.

muslol67

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Quote from: filharvey on September 15, 2018, 07:36:05 AM

Just few hours the news cane that Bitmain is on brink of bankruptcy.

Main reasons were huge inventory losses and investment on Bcash went wrong.

They tried to save Bcash and now paying price for it.

https://www.reddit.com/r/Bitcoin/comments/9fwopd/bitmain_on_brink_of_bankruptcy/

I read an article about this yesterday. Bitmain said he had 1 million BCH and LTC. They gave their opinion that they could sell these coins because of a shortage of cash. This can be dangerous even for the whole market.

btlzpr

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There is a saying that the dead camel is bigger than the horse.
Bitmain is currently a whale that to be stranded, but please note that it is only stranded. Once it is put into the water (or waiting for the tide), it will once again become the giant in the water, never underestimate the vitality of the whale.
In the past few days, we can see that it is struggling. The price of BCH is fluctuating drastically. In fact, whether it is ABC or SV, although they are competitors, I am sure that they do not want each other to die.

coinwizard_

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Most Advanced Crypto Exchange on the Blockchain

Bitmain is not going down completely, they have a lot of bitcoin cash in reserve so when the money runs out they will simply dump it. Not good for any BCH hodlers, it will be a mt gox style dump when it happens

KingScorpio

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Quote from: Aris novianto on December 25, 2018, 12:14:35 AM

now I experience very much bankruptcy, my bitcoin coins are now not selling well, there are a lot of losses that I bear, but I am still patient

do you want me to lie to you so you feel better or tell you honestly what i think and expect?

Aris novianto

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now I experience very much bankruptcy, my bitcoin coins are now not selling well, there are a lot of losses that I bear, but I am still patient

KingScorpio

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Merit: 325

Quote from: filharvey on September 15, 2018, 07:36:05 AM

Just few hours the news cane that Bitmain is on brink of bankruptcy.

Main reasons were huge inventory losses and investment on Bcash went wrong.

They tried to save Bcash and now paying price for it.

https://www.reddit.com/r/Bitcoin/comments/9fwopd/bitmain_on_brink_of_bankruptcy/

omg

did they do the pump of BCH from 100 to 200 usd? from 16th to 21 december?

if so they are damaged seriously, poor guys.

Searing

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Clueless!

Quote from: Nexigen on September 26, 2018, 07:58:28 AM

I don’t think that situation is so bad for this company. Yes, they have very large losses, low sales, but situation with their cryptocurrency was inspired by them and they got a good profit on it.

Sorry, but it looks like Bitmain may be a going down, like the Titanic. 50% of workforce fired.

https://www.ccn.com/bitmain-bitcoin-mining-giant-to-sack-50-of-its-workforce/

Pretty sure this means their IPO is deader than dead. Though Ebang seems to be going thru with their IPO.

https://www.financemagnates.com/cryptocurrency/news/crypto-miner-ebang-re-files-for-ipo-despite-weak-q3-results/

Well, even for ASIC makers and big players like Bitmain...sh*t just got real!

Nexigen

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I don’t think that situation is so bad for this company. Yes, they have very large losses, low sales, but situation with their cryptocurrency was inspired by them and they got a good profit on it.

franky1

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all this news even the inews QQ is about a report done pre-june

bitmain have actually got new asics being tested. they sold off their old rigs at a pleasant discount of $850/rig
and over that period their hashrate did not go down(which would be the case of liquidising all stock)

the hashrate went up because they are now using (cough i mean QC testing new rigs) before releasing them later this year
and in june they also accumilated investors

in 2018 bitmain made 22 investments themselves into other companies
https://www.crunchbase.com/search/funding_rounds/field/organizations/num_investments/bitmain
such as giving Circle $110m in May 2018

and also $14m as recently as september 10th to a company called 1000video

but here is the real funny part.
has anyone noticed BTCC..

cryptodalton

jr. member

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The aforesaid news might not be true. But if it is true, then this might be due to the failure of the initial public offering strategy. Moreover, the investment on Bitcoin cash might have also failed which cause Bitmain to go bankrupt.

fourplealise

newbie

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INEWS QQ, a chineese publications, recently revealed an article on Bitmain. It give a hint of Bitcoin going towards bankruptcy. The main cause that they indicated for this condition is the massive inventory loss and the loss in Bitcoin cash investment.

rosstiller

newbie

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This is indeed sad. But it says it is on the brink of bankruptcy, that means it has not been filed for bankruptcy yet. The company needs to see how liquid they are if they want to prevent it from happening.

1Referee

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Quote from: BrewMaster on September 15, 2018, 09:43:04 AM

when some groups pumps an altcoin, they do it to make money. in other words they pump it so that they can dump the coin on top near the peak not to just pump and then watch it go down! that doesn't even make sense.
dumping on top means they made a lot of money while gullible newbies were buying BCH thinking it is the "real bitcoin"!

I agree, pumping a price without selling at peak doesn't make sense, but what the BCash camp is doing doesn't make sense in its entirety. They really believe that their version of Bitcoin is Bitcoin, and for that reason kept accumulating more regardless of how hard people kept dumping. In a matter of like 3-4 months, Bitmain's BTC holdings shrunk with just under 15,000BTC.

Let's do a quick calculation;

31 DEC 2017; BTC holdings ~36,900BTC.
31 DEC 2017; BCH holdings ~841,900BCH.

31 MAR 2018; BTC holdings ~22,100BTC.
31 MAR 2018; BCH holdings ~1,021,300BCH.

The average BTC/BCH price during this period ~0.13BTC which loosely calculated could have accumulated Bitmain 114,000BCH + 40,000/50,000BCH from their mintings returns ~164,000BCH in total.

841,900BCH + 164,000BCH = 1,005,900BCH, which is pretty close to their balance on march.

Further accumulation becomes visible once they release new balance figures.

pooya87

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if you check the tweets history of that dude who OP is quoting here, he has been talking about Bitmain and how it is going bankrupt for a long time now. i wouldn't want to jump to saying FUD but this is pretty much what FUD looks like from someone who has been shorting bitcoin and trying so hard to make gullible sheep panic into thinking the biggest bitcoin mining farm, mining pool, bitcoin ASIC producer, ETH ASIC producer, biggest altcoins including BCH mining farm and pool is going bankrupt after making at least 2 or 3 billion dollar pure profit last year alone!

vit05

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I do not believe that. Their cost of production seems to me to be very low and with a great profit margin.
They are totally dominant in one of the most important sectors of Bitcoin. They have few personal expenses. They still have great machinery that could easily be converted into cash if needed.
Still has the possibility to seek money among investors before the IPO. And even though BCH has fallen so much, it is still a valuable asset that can be converted into cash. What big immediate expense do they have? They do not have Bank debts.

Kprawn

legendary

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It all depends on their liquidity. If they have enough "floating" cash available to wait out the BCash drop, then they will

survive, but when you are tied down too much, then the red flags will most probably start showing. This just shows you what

happens, when you fall for the Roger Ver stories. Roll Eyes

He will pull down some more people with him soon and then people will

see his true colours. Wink

btc_angela

hero member

Activity: 2660

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Bitmain is still going strong afaik, but holding BCH seems to be a bad move for them. They are expanding the bitcoin mining globally and then needed more funds for it that why they started their own IPO in order to attract investors and of course to have more funds as reserved, but I don't think they are on the brink of bankruptcy though, they still have the monopoly of bitcoin mining hardware and that alone is enough to keep them afloat for a long time.

o_e_l_e_o

legendary

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I was wondering why they were letting BTrash slowly bleed out and not pumping it again. Turns out it's because they can't because they are bankrupt.

A ropey source, but will be amazing if true. When they liquidate their massive BCH bags, we might finally see that trash coin dump to nothing where it belongs.

BrewMaster

legendary

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There is trouble abrewing

Quote from: 1Referee on September 15, 2018, 09:38:46 AM

Quote from: BrewMaster on September 15, 2018, 08:44:12 AM

first of all because they article is not considering the profit they gained by doubling the bitcoin they had after they forked also it is not considering the profit they made by pump and dumping BCH!

They didn't really double their Bitcoins. The split gave them additional coins in form of BCH, where they then used BTC to accumulate even more. If you also take into consideration that they have pumped the price numerous times last year, where they tried to maintain certain higher levels, you can imagine how severe the losses might have been at that point already.

Another important aspect is that by entering 2018 Bitmain also entered a new fiscal year, so the losses they suffered from this year is what really matters.

when some groups pumps an altcoin, they do it to make money. in other words they pump it so that they can dump the coin on top near the peak not to just pump and then watch it go down! that doesn't even make sense.
dumping on top means they made a lot of money while gullible newbies were buying BCH thinking it is the "real bitcoin"!

1Referee

legendary

Activity: 2170

Merit: 1427

Quote from: BrewMaster on September 15, 2018, 08:44:12 AM

first of all because they article is not considering the profit they gained by doubling the bitcoin they had after they forked also it is not considering the profit they made by pump and dumping BCH!

They didn't really double their Bitcoins. The split gave them additional coins in form of BCH, where they then used BTC to accumulate even more. If you also take into consideration that they have pumped the price numerous times last year, where they tried to maintain certain higher levels, you can imagine how severe the losses might have been at that point already.

Another important aspect is that by entering 2018 Bitmain also entered a new fiscal year, so the losses they suffered from this year is what really matters.

Topic: Bitmain on brink of bankruptcy - page 2. (Read 873 times)