Discover and read the best of Twitter Threads about #BitmainIPO
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Top 10 things one should know about #bitmainipo: 1) as told weeks ago Bitmaim lied about the investors to create FOMO - No Tencent, No Softbank, No DST, No Temasek and No GIC 2) Latest FOMO round failed to get target $1 bln. Got only $440 mln and $120 mln cash was not wired
3) investors pissed that Jihan and team misrepresented numbers. its clear now Bitmain nowhere near FOMO numbers of revenue $10 bln and net profit $3 bln 4) Q2 was disaster woth Net Loss of $400 mln and Net Loss of $800 mln if you take into account BCH Losses
5) Q3 numbers will be even more disaster as S9 prices further fell over 60 percent. Target for Revenue is $450 mon and Net Losses of $700-$800 mln range. 6) That meanda Q1-Q3 Bitmain Net Profit is NEGATIVE $500 MLN (!) 7) Bitmain will be doing initial roadshow in 2-3 weeks
Let’s take a closer look at Bitmain’s announcement at #WDMS #miningconf for their “next gen” 7nm ASIC chips. To most people this may seem like a big deal and good news, but actually the announcement shows things aren’t looking too good for Bitmain. Read on. #BitmainIPO
For context, pre-Blockstream I was the COO at BTCC and running the exchange and mining business units.
First, the announcement is mostly hand wavy forward looking statements. Bitmain “will soon” mass produce it’s 7nm chips. When is soon? When will the actual miners be on sale?
Bitmain Story 1: Realizing that financials and numbers collapsing, Jihan rushes a $260 mln deal in June (not $400 mln as reported) primarily driven by @Sequoia. The deal was done with limited DD and off Q1 numbers. Neil Shen - Sequoia partner is duped into believing all good
Bitmain Story 2. As numbers continue to further collapse, Jihan rushes even more to put together a quick $1 bln pre-IPO round hoping to close before he discloses catastrophic Q2 numbers. CFO hwr makes mistake of putting 60 days vs 90!
Bitmain Story 3: With 60 days elapsing since end of Q2 Bitmain now has to disclose its disaster Q2 numbers. Pre-IPO round is crumbling with investors asking moneys back or significant discount to $14 bln valuation Jihan on calls with investors but reputation tarnished #bitmainipo
In yet another blow to #Bitmain, @caijing (a major Chinese financial publication) just published an exposé on the #BitmainIPO debacle. m.caijing.com.cn/api/show?conte…
To sum it up: 1) Alleged Q2 losses in the $600-700 million range due to BCH holdings 2) Tencent and Softbank have denied pre-IPO involvement 3) Team behind S7/S9 now at Whatsminer 4) AND lost a patent case against Whatsminer
Yang Zuo Xing was the former director of design at Bitmain, and the supposed brains behind the S7/S9 miners. There have been serious concerns about whether Bitmain will be able to continue to innovate and produce miners at the same caliber without him leading the charge.
.@Caijing, a major financial publication in #China, just published an in-depth piece on the #BitmainIPO fiasco: massive Q2 losses, pre-IPO investors jumping ship / denying involvement, tech team behind S7/S9 left and now no new advancements, AND patents are rendered invalid.🍿📉 
I'll sum up key points in the article: Bitmain only survived the bear market of 2015-2016 because of Yang Zuo Xing's chip designs in the S7/S9. He is also the reason they were able to capture a large market share. (Yang is no longer with Bitmain. Started competitor ShenMa.)
After Yang Zuo Xing left, Bitmain was unable to produce any new chips successfully. Bitmain's 16nm BM1X89, 12nm BM1X90, 10nm BM1X93, all failed. Bitmain is working 7nm chips now but gains are minimal.
