Bitmain IPO Announcement Skyrockets Bitcoin Cash
Have you seen the markets today? Bitcoin Cash is on the up, flying high off the back of some recent announcements by Bitmain. At the time of writing, Bitcoin Cash is valued at $522.47, up 18.02%.
Bitmain, the manufacturers of some of the industries most popular cryptocurrency mining hardware have announced that they have filed for an Initial Public Offering (IPO) on the Hong Kong Stock exchange.
What is an IPO?
According to Investopedia:
âAn initial public offering, or IPO, is the very first sale of stock issued by a company to the public. Prior to an IPO the company is considered private, with a relatively small number of shareholders made up primarily of early investors (such as the founders, their families and friends) and professional investors (such as venture capitalists or angel investors). The public, on the other hand, consists of everybody else â any individual or institutional investor who wasnât involved in the early days of the company and who is interested in buying shares of the company. Until a companyâs stock is offered for sale to the public, the public is unable to invest in it.â
In the same way an ICO allows anyone to buy into a cryptocurrency or blockchain project, an IPO allows their stocks to be sold in the public domain. This has had a huge impact on Bitcoin Cash as now, people will be able to purchase shares in Bitmain for the first time.
Why Bitcoin Cash?
As a part of their IPO announcement, Bitmain have published a financial report which highlights some of the successes of both Bitcoin and Bitcoin Cash through Bitmain services. According to Cryptovest:
âThe key driver behind the rise of BCH was the financial report released by Bitmain as part of the prospectus for its upcoming IPO. The crypto mining equipment maker unveiled significantly stronger results for the first half of 2018 compared to the same period of 2017, booking $742.7 million in profits on revenues of $2.8 billion. The chief source of income for Bitmain were Bitcoin mining rigs, which accounted for $1.9 billion of revenues, with the rest coming from sales of other types of mining equipment.â
Itâs clear that the Bitcoin Cash community seems to have a close relation with Bitmain, though the pair arenât directly associated, itâs pretty hard to deny that the Bitmain news has had a very positive impact on the value of Bitcoin Cash.
For now, we expect Bitcoin Cash to continue to rise through the afternoon, though correction will take over by the end of the day and Bitcoin Cash is sure to level back out. Having said that though, todayâs climb is having a positive impact either way.