🔻 Bitmain IPO concerns: the crypto giant recorded a big loss in Q2 2018

Bitmain filed its IPO prospectus on Sept. 24. The year-on-year growth between the first six months of 2018 and a year prior saw a near-10x jump in revenue and 7x growth in profit. However, in Q2 of 2018, Bitmain saw revenue sink to around $800 million with a loss of $400 million. There is also risk of concentrated supplier risk, with Taiwan Semiconductor Manufacturing Company accounting for 59.2 percent of total supply in the first half of 2018. Another issue is Bitmain’s stash of cryptocurrencies, which were accounted for at cost, meaning that the value of these cryptocurrencies is priced at the time of acquisition, not at the current market value. A decent portion could have been acquired during the bull market last year, which may lead investors to believe the company to be overvalued.