Bitcoin Cash saw an increase from $447 to $538 in a matter of hours on the night of 26th September. It’s currently trading at $531 — an increase of almost 20% from yesterday’s trade at this time.
Reason: Bitmain filed for holding an Initial Public Offering (IPO) — offering the stock of a company on a public stock exchange for the first time.
Bitmain has a renowned name in global blockchain industry in the production of integrated circuits for cryptocurrency mining and mining hardware. The company also operates the largest cryptocurrency mining pools worldwide—Antpool.com, BTC.com and ConnectBTC.com which sets it’s perch atop the blockchain world.
In the draft forwarded to Hong Kong Stock Exchange (HKEX), Bitmain listed it’s corporate information and the figures are amazing.
According to the filing, the firm made a total of $2,517,719,000 in revenue in 2017, a major increase from the $277,612,000 in revenue it generated over the course of 2016. As of June 30 this year, Bitmain has made $2,845,467,000 in revenue.
Bitmain grossed profits of $1,212,750,000 last year and $1,030,151,000 for the first half of 2018, up from $151,351,000 over 2016. Before taxes, the numbers were $137,750,000 in 2016, $897,376,000 in 2017 and $907,792,000 for the first half of 2018.
The balance of Bitmain’s cryptocurrencies was $12.3 million, $56.3 million, $872.6 million and $886.9 million, accounting for 9.9%, 25.0%, 30.1% and 28.0% of their total assets as of December 31, 2015, 2016 and 2017 and June 30, 2018, respectively.
Bitmain also snatches airtime due to the possibility of the notorious “51% attack” — when a group of miners controlling more than 50%, practically 51% of the network’s mining hash rate, or computing power. The attackers can obtain the authority to prevent new transactions from gaining confirmations, allowing them to halt payments between users. They can also reverse transactions that were completed while they were in control of the network.
Yes, Bitmain can — theoretically — stage the 51% attack. Bitmain is slowly reaching the 51% hash rate control ledge. BTC.com, AntPool and ConnectBTC, respectively mined about 25.7 percent, 16.1 percent and 0.2 percent of all new blocks over the past week. This makes for an all time high hash rate of 42 percent. The reason for this level of control unlike most other mining pools or companies, Bitmain makes and uses its own mining equipment. Its range of ASIC rigs, designed with hash rates of over a million a second, makes the usually casted CPU and GPU mining equipment look like a steam engine in the 21st century.
Bitmain owns alot of BCH, watching the unusual highs Bitcoin Cash reached moments after the application was filed, the ICO will open a treasure chest for Bitmain.
The website blog for Bitmain is quite about this development but investors are going crazy, evident from the price graphs. Can Bitcoin Cash make the top 3 cryptocurrencies to bow down or is this another bullish run that’ll soon leave BCH where is started from? We can only wait and watch.