Beijing-based cryptocurrency mining company Bitmain has let its IPO application on the Hong Kong stock exchange lapse, according to a report by Bloomberg.
Bitmain filed its application in September 2018, and it expired as it reached its 6-month expiry date on Tuesday. However, Bitmain has said that it will refile its application “at an appropriate time.” a
According to a press release shared with Bitcoin Magazine:
We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value. We hope regulatory authorities, media and the general public can be more inclusive to this young industry.
In December, China’s Morning Post reported that market regulators were wary of granting IPOs to crypto firms as it was “premature” until better regulation was formed. The general sentiment is that the IPO application has at least brought some transparency to the firm’s dealings.
As the expiry date neared, market watchers were waiting on Bitmain to take the next step in the filing process. The company’s finances, affected by the bear market, may have had a part to play in the lack of progress.
Bloomberg reported that Bitmain was hoping to raise as much as $3 billion. Mining products have also fallen in price.
Bitmain, founded in 2013, is the largest producer of mining equipment and owns AntMiner, AntPool and Hashnest. The company had suffered greatly when crypto winter began to set in Q3 2018, with CoinDesk reporting that it lost roughly $500 million as the market tumbled to one of its longest droughts in recent times.
Bitmain also decided to revamp its approach to the market, laying off several employees in Israel and Amsterdam and shutting down operations in both locations. Instead, they’re taking a long-term approach that would result in a more sustainable and scalable business.