Mining company Bitmain lost nearly $500 million in the third quarter of 2018 between a bearish market for the cryptocurrency, CoinDesk reported. Bitmain, which is currently trying to start an initial public offering (IPO) has recently presented an update on its economic returns to the Hong Kong Stock Exchange (HKEx). The HKEx is examining Bitmain’s appeal for an initial public offering (IPO) which was filed in the month of September 2018.
According to Coindesk, the report designated that for 2018 as a sum, not including Q4, income was $3 billion and earnings was $500 million. This conflicts with earlier numbers for the first half of the year, for which earnings was $1 billion. During the first quarter of 2018, Bitmain had gained a rise in the net profit of around $1.1 billion.
If the data is accurate, the presumption is that Q3 cost Bitmain $500 million in impairments, establishing a publicly maintained speculation that the fast Bitcoin bear exchange late last year received grave losses on the mining area. Bitmain’s IPO filing method, which could accumulate notable reserves for the company, has been filled with obstacles since the layouts made their move into the public domain in Q2 2018.
In its filing to HKEx, Bitmain had claimed that the company has encountered exponential maturity during the Track Record Period. The revenue grew from the US $137.3 million in 2015 to the US $2,517.7 million in 2017, describing a CAGR of 328.2%, and improved by 936.6% from the US $274.5 million for the six months ceased June 30, 2017, to US $2,845.5 million for the six months ceased June 30, 2018. During the same period, its profit for the year grew from the US $48.6 million in 2015 to the US $701.4 million in 2017 with a CAGR of 279.9%, and raised by 794.8% from US $83.0 million for the six months ended June 30, 2017 to US $742.7 million for the six months ended June 30, 2018.
Bitmain’s adjusted net profit excluding share-based remuneration costs and reasonable price changes of exchangeable redeemable approved shares grew from US$48.6 million in 2015 to the US $113.6 million in 2016 and further to US$952.6 million in 2017. After this, adjusted netprofit grew from US$83.0 million for the first six months of 2017 to the US $952.2 million for the first six months of 2018.
The report further elaborated that the update presented to HKEx revealed Bitmain’s crypto holdings collapsed in value from more than $800 million as of June 30 to smaller than $700 million at the end of the third quarter. This drop of more than $100 million over three months exhibited a complete decline in market prices over that point.
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