Bitcoin Cash’s 25% Gains Fueled by Bitmain’s IPO Filing
Bitcoin Cash (BCH) has made its way onto today’s leaderboard, gaining nearly 25% on the heels of a major development at a bitcoin mining giant. After months of speculation, Bitmain Technologies has filed an application for an IPO in Hong Kong, sending shares of Bitcoin Cash (BCH), which is including among the cryptocurrencies that the company mines and which Bitmain holds on its balance sheet, soaring in the interim. The price is hovering at $542 on trading volume of nearly $800 million. If you ask Mati Greenspan, eToro senior market analyst and Hacked.com contributor, there’s no question about the catalyst. He is quoted in Forbes as saying:
“This spike was definitely caused by Bitmain’s IPO filing.”
Bitmain is one of the world’s largest crypto miners, with its signature product the Antminer that uses the ASIC chip. Its solid balance sheet coupled with its public disclosure that it owns hundreds of millions of dollars worth of cryptocurrencies including Bitcoin Cash is a huge boon for the market. Let’s take a look.
Today Bitmain released the first of many financial statements with the local regulator. The company’s portfolio of cryptocurrency holdings including bitcoin, Bitcoin Cash, ether, Litecoin and Dash among others was worth $886.9 million as of June 30, since which time the value of BCH has fallen 22%. While Bitmain doesn’t appear to break down asset allocation, Bitmain according to pre-ICO documents owned more than 1 million BCH as of the end of the first quarter, which at today’s price is worth more than $500 million. The fact that Bitmain holds so much Bitcoin Cash has the potential to influence other investors.
“We have focused on developing mining hardware with different algorithms covering major cryptocurrencies, including bitcoin, Bitcoin Cash, ether, Litecoin, Dash and Zcash, which makes us one of the few companies offering mining solutions for various cryptocurrencies.”
The filing reveals the following about performance in the first six months of 2018
- Profits of $742.7 million
- Revenue of $2.8 billion
- Adjusted return on equity = 58.9%
If a rising tide lifts all boats in crypto, then the Bitmain development is enough to bolster the many leading cryptocurrencies, but Bitcoin Cash is the clear winner today. The gains couldn’t have come too soon for BCH, whose narrative has been tied to the controversy surrounding an upcoming hard fork, which not all members agree on. Bitcoin Cash is already listed on dozens of exchanges, with much of today’s volume unfolding on BitForex, and traders are widely anticipating a listing on U.S.-based Gemini exchange soon.
Featured image courtesy of Shutterstock.