Rumor: Bitmain Financials Indicate $740 Million In Q3 Losses

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Since the hard fork of Bitcoin Cash that resulted in the
ABC camp claiming the ticker for BCH, the value of the
digital asset has dropped from around $500 on the day
before the event (November 14th) to current levels of
$115. This is a drop in value of 77% in a period of less
than a month. Some crypto enthusiasts and analysts
have concluded that BCH has entered what is known as a
Downward Spiral. This has been explained as the
situation where it might not be profitable to mine the
digital asset.

Recap of Hash Wars

The Bitcoin Cash hash wars involved two camps. There
was Craig Wright who supported the Satoshi Vision
upgrade of BCH or simply BSV. Then there was Roger Ver
and Jihan Wu (CEO of Bitmain) who were for the ABC
version of the coin’s upgrade.
Bitmain Rumored to Have Made $740 Million In
Loses in Q3, 2018

According to the Bitcoinist, unconfirmed leaked
information indicate that Bitmain has lost $740 Million in
Q3 of 2018 excluding the costs to financing the Hash
Wars. The Bitcoinist cites a twitter account with the
username of @BTCKING555 who revealed the information
as follows

"We got leak of Bitmain Q3 numbers! COMPLETE
DISASTER. The company lost $740 Million including
losses on inventory and bitcoin cash! And this is not
accounting for hash war costs! # bitmainipo
@ HKEXGroup

Concerns that the Anticipated Bitmain IPO Might
Not Be As It Seems

If the reported losses of $740 Million turn out to be true,
and without factoring in the costs of the Hash Wars,
investors might begin to assume that the anticipated
public offering of Bitmain worth $18 Billion might be a
way of passing over ‘the bag’ of a failing venture.
It was also revealed that Bitmain decreased its holdings
of Bitcoin in preference for Bitcoin Cash around March
this year.
One Medium blog summarized the scenario of passing
the bag through an IPO as follows:

You have a persisting bear market.
How do you realize the value of this monolith crypto
business and your holdings?
You IPO and pass the bag on in one huge lumped
stock offering and hope investors don’t realize all of
your current assets are very, very illiquid.

UnitedCorp Files Suit Against Bitmain, Roger Ver and Others

In addition to the aforementioned concerns, UnitedCorp
has launched a suit against Bitmain, Bitcoin.com, Roger
Ver, Kraken Bitcoin Exchange and others. The suit claims
that they hijacked the Bitcoin Cash Network after the
November 15th hard-fork. UnitedCorp filed its suit in the
US District Court for the Southern District of Florida.

Source : https://ethereumworldnews.com