High volatility makes companies reluctant to crypto
The crypto volatility has been extreme in the market for the past couple of months, which has made the HKEX reluctant to listing crypto companies and IPOs such as the planned Bitmain IPO.
The situation in the crypto market is not very optimistic, however there are a number of companies that have taken precaution against the bear market. This includes Chinese companies like Bitmain.
In a report last week, it was said that the company wanted to take the decision to shut down its Israeli Development Center. The Bitmain, which was and still is one of the highest ranking companies in the Blockchain industry might see its presence within the spaced reduced.
Bitmain IPO plans on pause
In September, following a meeting with two other mining giants, Ebang and Canaan Creative saw the 3 companies get into a partnership. This was followed by the companies filing for an application to sell shares on the HKEX, which at the time of application held the Bitmain IPO.
Bitmain on the other hand was planning to focus on new mining equipment while expanding its geographical influence via the acquisition of new land for the mining of cryptocurrencies.
The year has been going rather hard and unpredictable for the crypto industry. Bitmain is not the first crypto company to file for an application in order to go public, as the chances of long term success seem low.
According to local rules, if an applicant filed a draft that prospected with the HKEX, the application should be approved by the HKEX together with the securities and Futures Commission.
The company thinks that a listing hearing should be held after that, which may bring the company to the public.
Nonetheless, there is a six-months time limit in order to pass all the steps required, or this may lead to the application becoming inactive. Canaan will be filing its application in may, after it is fully lapsed with only two weeks before the Ebang moves along.
Bitmain will further continue to try to convince the exchange, as this may not be very easy. They are focused on making HKEX see that the market will get over its current downtime. While Bitmain thinks its good to convince the stock exchange that they are a very strong company capable of surviving any market conditions now and in the future.
What do you think about this decision by the company? Please feel free to leave your comments down below.