Crypto mining chip-maker Bitmain lets HK IPO application lapse

Bitmain Technologies Inc. application specific integrated circuit (ASIC) units sit on a shelf inside the DMM Mining Farm, operated by DMM.com Co., in Kanazawa, Japan, on Tuesday, March 20, 2018. Japan is moving toward legalizing initial coin offerings, even as countries such as China and the U.S. restrict the fundraising technique because of their risks for investors. A government-backed study group laid out basic guidelines for further adoption of ICOs, according to a report published on April 5. Photographer: Tomohiro Ohsumi/Bloomberg

Bitmain Technologies Ltd., the world’s biggest producer of cryptocurrency mining chips, has let its application for Hong Kong initial public offering lapse.

The virtual currency mining firm’s listing application, which was initially filed in September, expired on Tuesday, according to the Hong Kong stock exchange’s website. The Beijing-based company was targeting to raise as much as $3 billion, Bloomberg News has reported.

“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,” Bitmain said in a statement posted on its website Tuesday. “We hope regulatory authorities, media and the general public can be more inclusive to this young industry.”

The company will restart the listing application work at an appropriate time in the future, according to the statement. Bitmain also named Haichao Wang as its new chief executive officer, while co-founders Micree Zhan and Jihan Wu will remain directors of the company, Tuesday’s statement shows.

Bitmain is the second crypto hardware firm to face hurdles in pursing a listing in Hong Kong as a fall in the price of Bitcoin makes it more difficult for the industry to attract stock-market investors. The city’s stock exchange and market regulators consider IPOs by cryptocurrency firms to be “premature” until a proper regulatory framework is in place, the South China Morning Post reported in December, citing unidentified people.

Canaan Inc., a smaller rival to Bitmain, is considering selling shares in the U.S. after its Hong Kong IPO application expired, people with knowledge of the matter have said. Ebang International Holdings Inc., the smallest of the three, is still pursing a Hong Kong listing.

Also read:

Cryptocurrency major Bitmain chooses Hong Kong for IPO

Ex-Bitmain chip designer Zuoxing’s MicroBT takes on IPO-bound crypto mining giant

Bloomberg

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.