Blockstream’s Chief Strategic Officer, Samson Mow, recently appeared in an interview to speak about his comments on the IPO for Bitmain, the leader in cryptocurrency mining Application Specific Integrated Circuits.
Mow has been vocal on Twitter concerning his stances on the IPO, providing his followers with information as to the assets held by them, and the various rumors regarding the withdrawal of early investors from the investing round. When asked about this, he stated that there were a lot of “false facts” at play regarding the investments in Bitmain. He went on to say [trans.]:
“This is actually a fraud. But there are always many rumors in the industry. It is speculated that a certain group will intentionally produce false information and shed it to investors.”
Moreover, he also spoke about the fake news spread by news outlets such as the investment in the latest round by investors such as Softbank and Tencent. Mow stated that the citing of articles with wrong information begins at the root of spreading rumors.
The second quarter earnings prediction for Bitmain by analysts fell short of those that were expected. Mow also spoke about this, stating that it was a simple calculation. He went on to say:
“Bitmain has issued discount coupons to dispose of its stockpile inventory assets. As a result, the miner price has plummeted up to 85%. It is doubtful whether Bitmain fully reflected this part when calculating sales.”
Many investors were worried about the amount of Bitcoin Cash tokens held by Bitmain, which comes up to a total of about $600 million. According to a report by BitMEX Research, the company spent about 70% of its income flow last year to buy Bitcoin Cash. This resulted in a loss of about $328 million, as the price of the asset has declined since.
The research also stated that the company could benefit from better management of their resources. They stated:
“Bitmain can be a legendary crypto company, generating strong shareholder returns for decades to come, but in order to achieve this (and it’s a lot harder than it sounds) the Bitmain management team may need to improve their management of company resources.”
Speaking about this, Mow stated:
“In addition, their core asset, Bitcoin Cash, has plunged throughout the second quarter. I am looking forward to seeing that the sales of Bitmain were accurate and how the financial status was transparent.”
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