Actually the article i posted was more to show where and how much they invest and the expenses for it.
That’s shitload of money they used for their expansion. About 2018, only Q1 had a profit, Q2 and Q3 are big lose months for Bitmain, means no profit this year but negatives and there is a good chance they didn’t counted on such bad year after the successfull ones. Without a miracle 2018 will be a pure lose year for them and with only less than 2 months left i doubt they make it into a positive balance, hence the reason i think the financial problem could be true…
About the 14B coming in, here we have a saying that until you feel it in your pocket you have yet … NOTHING. Means, until it gets a successfull IPO it’s yet nothing they have from there.
Sidenote, bankrupt is something different than having delays in payments. Bankrupt is when your passives are bigger than your actives (not sure if it’s called that in English!). That’s for sure not the case reading what Bitmain owns.
P.S.: I’am not going to argue this any further as it’s of 0 interest for me by now. Just wanted to add some intput where their last year profits went, take it or leave it…
A privately held company valued at about $12 billion (surpassing Coinbase, Binance, & Ripple Labs ) with a market share of 70–80% in producing bitcoin mining hardware
massively profitable year of 2017 with a net profit of $1.2 billion
Bitmain has already earned a profit of $1 billion in the first quarter of 2018 with an expected profited of $2–3 billion for the full year.
CEO Jihan Wu is planning to launch an IPO (Initial Public Offering) for Bitmain for $14 billion to raise capital for further expansion.
The article you linked is not helping your side of the debate…it talks about how much money they made. Than talks about the investments(750m) they have made with that money, small in comparison. I dont see anywhere in the article, that says they have invested billions in the last year.
Did you even read the article? It does not say anything about them losing money. Infact the opposite. This is right from the article you posted as evidence, "Bitmain has already earned a profit of $1 billion in the first quarter of 2018 with an expected profited of $2–3 billion for the full year. ", and now you post saying they are losing money and its gonna be a loss? Why not link the article that supports what you are claiming and not the opposite?
This is incorrect, bankrupt just means you are unable to pay your debts, has nothing to do with passive vs active income. This is why I keep saying, they are mostly likely not bankrupt.
Bankrupt - (of a person or organization) declared in law unable to pay outstanding debts.
My point is they are most likely not bankrupt. And yet you keep debating, saying they spent all the profits they have made, and are in trouble now. What do you base your information on? One article that came out with “insider sources”, saying they are having problems paying their suppliers?
Its completely possible, however I would need to see more evidence before I jump to conclusions.
Why is Bitmain raising capital so fast & only showing Q1 results to pre-IPO investors? We’re well into Q3 now. The reason is Q2 was a disaster. Bitmain is sitting on a massive $1.24 billion USD in inventory & S9 prices dropped by ~85%! Q2 losses range in the $600-700 millions.
Reports also reveal a disastrous Q3 financial report with Bitmain making efforts to concealing it from their investors. Mark Li of Sanford deacribed the situation as “…… the beginning of a very rapid deterioration of bitmain”
It’s reported that bitmain’s risk wafer on 16nm/12nm/10nm all failed and lost around 4 billion yuan. (~575M USD.)
Latest from insider Bitmain Q3 results are shaping up much worse than expected. There will be even more massive inventory and crypto write-downs. that in addition to collapsing S9 prices and skyrocketing network difficulty
From what I heard the shizzle is between Bitcoin en Bitcoin Cash.
Look that up, what they had from the 1 and how much they sold to buy the other.
From my point of understanding, they sold bitcoin to buy bitcoin cash and both went down.
In their IPO you can see what they lost from that, I had a nice list but can’t find it atm.
While conversely claiming the IPO could prove successful, BitMEX had little sympathy for the BCH acquisitions losing Bitmain money.
“In a way some of Bitmain’s biggest mistakes, such as producing too many units and buying too many speculative altcoins in a bull market, are somewhat analogous to the typical behavior of mining company management teams,” researchers write.
BitMEX found Bitmain spent almost 70 percent of its 2017 operating cash flow on buying BCH.
After the public float in Hong Kong, which should occur before the end of the year, such decisions could be make or break for Bitmain’s fortunes, they add, concluding:
My electricity cost breakeven is around $15-20 per ZEC, so I’ll likely keep on mining even if we drop another 50% in price. Considering the hardware is a sunk cost, as long as ZEC mining revenue is above the cost of electricity people will keep running their ASICs.
No idea what your electricity costs are but at $0.10 per kw/h the absolute break even is around/latest at USD 25 at current difficutly, but as we have seen some hours ago that difficulty won’t hold for long … Not even talking into account taxes, other consumables and so on … If you can still mine ZEC at a price of $25 that’s good for sure, not many private miners have this possibility for sure.