Bitmain’s Bitcoin Cash
The huge Chinese Bitcoin mining ASIC leader Bitmain has more than a handful of Bitcoin Cash to its name and it is not letting go of them in a hurry. The company not only has a strong grip on ASIC mining but it is also diversifying now and is investing in an internet search engine and a few other operations to test the water in other industries.
Bitmain is certainly controversial but does not seem to mind this in the slightest. It is currently the leading provider of the very power intensive ASIC mining machines which are causing a lot of negativity due to their lack of consideration for the environment. There are many now looking for alternative options to provide the necessary energy for their Bitcoin mining in the likes of green and hydro power. On top of this, the company also supported the Segregated Witness 2X hard fork on Bitcoin Cash in 2017. It has since come to light very recently that Bitmain actually has 1 million Bitcoin Cash in its pockets. At the moment, this is worth $600 million. Although everyone was well aware that Bitmain was a great big fan of Bitcoin Cash, there was never any hard evidence of just how much until the Bitmain Initial Public Offering was announced. Because of this, potential investors have to be aware of certainly financial information. Unfortunately for Bitmain though, current asset details were actually leaked to more than just the potential investors. And it is very clear from what has come to light is the fact that Bitmain has been investing more in Bitcoin Cash whilst at the same time decreasing their stake in Bitcoin. From the data obtained, the Cryptocurrencies were secured through a variety of platforms from forked coins to mining rewards.
The Positive Side
The great news is that actions speak louder than words so the fact that Bitmain has all of these coins shows their confidence in the Cryptocurrency. Bitcoin Cash actually covers a high percentage of the company’s current assets. With this much interest in Bitcoin Cash, there is a lot at stake if its valuation decreases. Not only could Bitmain’s assists go down in price, but its Initial Public Offering could be severely affected. The company has already invested a lot of time, money, hash power and electricity to Bitcoin Cash and if things were to go downhill, that is an awful lot of resources wasted. On a more positive note, if Bitmain successfully goes public then there is every possibility this could go into Bitcoin Cash.
The Negative Side
This huge amount of money invested in Bitcoin Cash means that Bitmain holds over 5% of all of the Bitcoin Cash that are out there and there are 17.3 million of them. At the moment, not only is Bitcoin Cash down compared to where is has been it is also 50% lower in value than Bitcoin. Not a position that Bitmain would like to be in. At the moment there is firm evidence that Bitmain is trying to focus less on Bitcoin Cash and dedicate more of their resources to their up and coming Initial Public Offering.
Whatever happens over the coming months with the Bitmain Initial Public Offering, it will be exciting and watched by many throughout the world. How the company chooses to manage its Bitcoin Cash portfolio alongside this will be a good one to watch.