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SoftBank Denies Reports of Bitmain Deal; Bitmain Still Silent

Japanese telecom massive SoftBank has denied media stories of its involvement in a pre-IPO investment spherical of bitcoin mining rig producer Bitmain.

Last week, a number of media shops had reported that SoftBank and Chinese web massive Tencent had been main a pre-IPO investment spherical for Bitmain. The new data comes at the heels of a report that displays Bitmain unloaded maximum of its bitcoin (BTC) to acquire bitcoin money (BCH).

According to remaining week’s tale, SoftBank and Tencent invested an undisclosed quantity of cash on this planet’s most beneficial bitcoin mining rig maker, bringing its valuation to about $15 billion a couple of weeks prior to its deliberate Hong Kong IPO.

Originally printed at the Chinese platform QQ on August four, 2018, the tale was once hastily reproduced and reblogged around the globe, It claimed that the investment spherical was once made up of a number of traders together with China Gold, SoftBank and Tencent.

Crypto information newsletter Cointelegraph stories, then again, that following remaining week’s broadly syndicated tale, an nameless supply reached out with a tip declaring that neither SoftBank nor Tencent had been in truth concerned within the pre-IPO investment spherical.

Responding to Bitcoin Magazine’s request for remark, Kenichi Yuasa of SoftBank’s company conversation place of job referred to as the rumors “background talk” now not price citing, declaring:

Neither the SoftBank Group Corp. nor the SoftBank Vision Fund had been concerned within the deal.

SoftBank has been famous for its passion in blockchain era, having trialed a blockchain-based, cross-carrier telecom cost gadget in September 2017. Tencent, for its section, is now counted as a really world tech participant, having surpassed Facebook’s marketplace capitalization in 2017.

Investment from both of those behemoths would now not simplest enhance Bitmain’s monetary place however would additionally point out to the marketplace that they consider in its long-term expansion possible.

Conversely, if the tale was once shared with an intent to lie to the marketplace, this may lend credence to a rising quantity of voices that consider that Bitmain isn’t inhabiting the unbelievable marketplace house it claims to be.

Blockstream Chief Strategy Officer Samson Mow is one of the ones voices. On August 11, 2018, Mow posted a tweet appearing Bitmain’s Q1 2018 effects with the next remark:

Why is Bitmain elevating capital so rapid & simplest appearing Q1 effects to pre-IPO traders? We’re smartly into Q3 now. The explanation why is Q2 was once a crisis. Bitmain is sitting on a large $1.24 billion in stock & S9 costs dropped by way of ~85%! Q2 losses vary within the $600-700 thousands and thousands.

In reaction, different voices across the crypto global have additionally been speculating about Bitmain’s precise marketplace place. Some opine that it’s imaginable that Bitmain isn’t being utterly in advance about its marketplace place, in essence sitting on an in depth stock of unsold miners in a endure marketplace and making an attempt to make use of an IPO as an go out approach to depart traders figuratively keeping the bag.

Responding to a request for remark from Bitcoin Magazine Tina Dang from Bitmain’s International PR and Communications Department stated, “Unfortunately, we’re not able to touch upon those subjects.”

Updates to practice as this tale develops.

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