The world's largest maker of cryptocurrency mining chips has shelved plans for an ambitious initial public offering in Hong Kong, becoming the latest victim of bitcoin's price plunge.

Bitmain Technologies said Tuesday it has allowed its IPO application to lapse, six months after it was initially filed in September aiming to raise up to $3 billion, according to Bloomberg News.

Under Hong Kong's listing rules, applications expire half a year after filing.

"We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value," the Beijing-based company said on its blog on Tuesday.

"The bear market at the end of 2018 brought both challenges and opportunities that Bitmain will work hard at addressing in 2019," it said, adding it would restart its application "at an appropriate time in the future".

Bitcoin experienced astonishing growth in 2017 to peak at a record US$19,500 by the end of that year.

But investors feared a speculative bubble and it has since crashed to stand at about $3,980 per unit following months of volatile trading.

The virtual bubble burst -- followed by what has become the worst slump in years -- has made mining operations practically unprofitable.

Bitmain's co-founders Micree Zhan and Jihan Wu became the richest cryptocurrency billionaires to appear on a list by Hurun Report last year of China's wealthiest people.

The entrepreneurs have stepped down from their roles as CEOs and were replaced by Haichao Wang, the statement said, but it added the pair would continue to guide the company's strategic development as directors.

In addition to a leadership reshuffle, the announcement also alluded to layoffs made at the end of last year and described them as "a difficult but necessary decision".

It did not say how many employees were affected.

Other manufacturers have faced similar hurdles recently.

Bitmain's rival Canaan saw its listing application expire in November.

Mining chip maker Ebang is still pursuing a Hong Kong IPO after refiling its application in December.

Related Links
Global Trade News

Tweet

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only

Craft breweries increase residential property values
Toledo OH (SPX) Mar 27, 2019
The craft brewery boom is good for home values. Using Charlotte, North Carolina, as a case study, researchers at The University of Toledo and the University of North Carolina at Charlotte found that craft breweries have a positive impact on residential property values. Condominiums in center-city neighborhoods show a nearly 3-percent increase on sales price after a brewery opened within a half mile. Single family homes in center-city neighborhoods saw a nearly 10-percent increase after ... read more