Bitmain revenue sees a 936.6% increase for 6 months ending June 2018 in comparison to 2017

Bitmain, one of the biggest Bitcoin mining company around the globe and the world’s largest ASIC chip producer released the application proof submitted to the Hong Kong Stock Exchange in pursuit to conduct an Initial Public Offering [IPO]. The news regarding the IPO has been doing the rounds in the market for the past few months with well-known influencers speculating about it.

According to the report, the mining giant’s revenue has increased by 936.6% for the past 6 months, ending on 30th June 2018 in comparison to 30th June 2017. The company revenue till the end of June this year was stated to be $2845.5 million whereas, in June 2017, the revenue was stated to be $274.5 million.

application proof submitted to the Hong Kong Stock Exchange

Application proof submitted to the Hong Kong Stock Exchange

However, the volatile market of cryptocurrencies seems to have a negative impact on the mining platform. This is because the mining platform had expected the price of cryptocurrencies to continue its upwards trends.

This was followed by the company placing large amounts of orders with their production partners. This eventually had a huge toll on the platform as the inventories of the platform increased and the decrease in advance that the platform received from its customers for the first half of 2018.

Furthermore, the document stated that Bitmain could sell their mining products at a lower price because of the downward trend of cryptocurrency prices in the market. This, in turn, could have “an adverse effect” on the business, profit, operations and financial conditions of the mining platform.

The platform further stated that the high cryptocurrency market volatility and the uncertainty of the long-term value of cryptocurrencies are the risk factors and that it could have an “adverse effect” on the company’s operations. Moreover, Bitmain’s 28% of the total assets are in cryptocurrencies.

The platform also stated that if the company fails to meet the demand of the customers in terms of producing the mining hardware if cryptocurrencies surge in the market, then they would lose a significant market share including their customers. They further added that if the demand increases more than their expectations then the company will be unable to deliver their products in the stipulated time frame which would also result in the platform losing their customers and their market share to their competitors.

The other risks associated with the mining giant includes regulatory risk, inability to sustain their historical growth rates and performance, managing the company’s growth effectively, risks associated with global operations, inability to adapt to new business model once all the Bitcoins are mined.

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