Chinese Construction Company Turned Mining Firm Lost Over $23 Millions - page 2.

markstivn98

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Quote from: DreamStage on April 20, 2019, 05:50:23 AM

Chinese construction company turned to cryptocurrency mining firm, Huatie HengAn, has reportedly been sold after its value decreased by over 90%.

The firm has been reportedly sold for around 12 million yuan ($1.8 million), after its value decreased from 170 million Chinese yuan ($25.3 million) in under a year.

Still, 8btc notes that its financial filings reveal that the company’s main business appears to be cryptocurrency mining, since in 2018, it purchased 36,500 machines from Avalon and Ebang. While the report allegedly calls the machines servers, the producers are actually known for the production of cryptocurrency mining Application Specific Integrated Circuits and reportedly don’t produce servers in the traditional sense.

8btc claims that the sale of the company attracted much attention from the local crypto community, since it could be the country’s first listed company that has been revealed to engage in crypto mining. The loss sustained by the parent company because of the depreciation of its mining business reportedly amounted to over 95 million yuan ($14 million).

This value purportedly exceeds the initial investment of around $25 million. Furthermore, 8btc notes that the company’s revenue for the year was 53 million yuan ($7.9 million) and that as of Feb. 28, the net loss increased to nearly 158 million yuan (roughly $23.5 million). All of this reportedly decreased the net asset worth of the company to only 12 million yuan ($1.8 million).

Full News Source:
https://cointelegraph.com/news/report-chinese-publicly-listed-construction-company-turned-mining-firm-lost-over-23-million

It was better for them to develop their work, not to surrender so easily, but the question we have to ask is the cause of this loss?
Is it because of the price of the bitcoin or because of the bad planning of the work, this is really bad.

Haunebu

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Quote from: Ailmand on April 20, 2019, 08:13:42 AM

To add, China also banned mining.

Am not so sure about it. There is conflicting news regarding this matter at the moment and we will know for sure what the verdict is very soon. This whole mining business has basically become a far more riskier venture ever since the bear market of 2018.

This is why mining is not always a successful venture. Do your research people.

Ailmand

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I think they had problems with management. They also failed because of declaring a different business permit. I guess it's better if they focus more on construction business while doing mining as their side business. Mining business isn't also as profitable as it was. To add, China also banned mining. They should have made an in depth study or a feasibility study before being engaged in mining business before operating it.

lyks15

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It is a bad karma for the Chinese Construction Company because they refuse the other companies that plan to build in their country but they refused it and I think they only get the idea so they can build their own Mining Firm. I am not surprised that even their fellow citizen will not have good business agreement so their construction and business was not become successful.

susila_bai

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Quote from: mu_enrico on April 20, 2019, 07:30:28 AM

"They went full Jihan, Never go full Jihan" - random quotes
I think it's only the tip of the iceberg. I bet many shell companies use different permit to get cheap electricity for mining. They got what they deserved.

I agree with you, showing the construction business they get cheap electricity and thought of doing mining through it and earn more then construction but it went wrong as the market went down and mining cost also went up. That is why it is always recommended not to go all in and do some investment in real life projects so one goes wrong another investment should be able to survive.

mu_enrico

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"They went full Jihan, Never go full Jihan" - random quotes
I think it's only the tip of the iceberg. I bet many shell companies use different permit to get cheap electricity for mining. They got what they deserved.

okala

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Quote from: betty11 on April 20, 2019, 06:01:10 AM

Very laughable, I feel for their losses. Maybe they thought bitcoin was going to go heaven immediately even as high as $50,000 as some expert were predicting in the past and even speculating now. Bitcoin mining is never something to jump into without carrying out a feasibility study. This news cracks my ribs. abandoning constriction for a new gold and something more profitable but life comes with experience and patience.

Am not sure if they loses is as a result of the bitcoin market, I think this have to do with management problem because before the company vent into mining they previous business was not doing well to. So I'm my own thought this continues loses could be as a result of mismanagement.

Script3d

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they could have just expand their company to be both construction and mining company, no need to go all in, having more eggs in the basket is better, it backfired them at the end of the day, if there were only patient to expand as both it wouldn't turn out like this.

betty11

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Very laughable, I feel for their losses. Maybe they thought bitcoin was going to go heaven immediately even as high as $50,000 as some expert were predicting in the past and even speculating now. Bitcoin mining is never something to jump into without carrying out a feasibility study. This news cracks my ribs. abandoning constriction for a new gold and something more profitable but life comes with experience and patience.

DreamStage

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Chinese construction company turned to cryptocurrency mining firm, Huatie HengAn, has reportedly been sold after its value decreased by over 90%.

The firm has been reportedly sold for around 12 million yuan ($1.8 million), after its value decreased from 170 million Chinese yuan ($25.3 million) in under a year.

Still, 8btc notes that its financial filings reveal that the company’s main business appears to be cryptocurrency mining, since in 2018, it purchased 36,500 machines from Avalon and Ebang. While the report allegedly calls the machines servers, the producers are actually known for the production of cryptocurrency mining Application Specific Integrated Circuits and reportedly don’t produce servers in the traditional sense.

8btc claims that the sale of the company attracted much attention from the local crypto community, since it could be the country’s first listed company that has been revealed to engage in crypto mining. The loss sustained by the parent company because of the depreciation of its mining business reportedly amounted to over 95 million yuan ($14 million).

This value purportedly exceeds the initial investment of around $25 million. Furthermore, 8btc notes that the company’s revenue for the year was 53 million yuan ($7.9 million) and that as of Feb. 28, the net loss increased to nearly 158 million yuan (roughly $23.5 million). All of this reportedly decreased the net asset worth of the company to only 12 million yuan ($1.8 million).

Full News Source:
https://cointelegraph.com/news/report-chinese-publicly-listed-construction-company-turned-mining-firm-lost-over-23-million

Topic: Chinese Construction Company Turned Mining Firm Lost Over $23 Millions - page 2. (Read 349 times)