According to F2Pool’s shutdown currency price data released yesterday, BTC mining machine S7, A741, M3+ (frequency reduction version) has reached the shutdown price, 10 mining machine including T9 and S9 have not. A director of F2Pool revealed that as much as one third of the mining machine was shutdown since the market crash this year, with part of the machines resumed to operation during recent pullback. The current bear market is tough on miners, pools and mining machinery companies.
Canaan Creative submitted application to Hong Kong Exchanges (HKEX) in May this year; Ebang International reapplied list on HKEX in December; Bitmain submitted application to HKEX in September. Data showed, Canaan Creative’s profits last year reached $56 million, Ebang reached $60 million and Bitmain reached $1.2 billion. Despite their outstanding profit last year, the three mining giants have suffered setbacks when entering the capital markets. As early as June 2016, LYT (300423) tried to acquire Canaan Creative through material assets reorganization. However, the transaction was subsequently questioned three times by the Shenzhen Stock Exchange. Due to the suspicion on Canaan Creative, the acquisition was eventually suspended. Canaan Creative again, in August 2017, submitted the New OTC Market application and gave up afterwards. Cannan Creative’s IPO application has “expired” as its current status.
On August 19, 2015, Ebang was listed on the New OTC Market. However, due to the lack of active trading on the New OTC Market, it was delisted from New OTC Market in March this year. Three months later, it turned to apply HKEX. On September 29 this year, mining machine giant Ebang was hit by door-to-door debt collection of victims in P2P Yindou online fraud. Victims of the case asked HKEX to reject Ebang’s application and reported to the Hong Kong police department. Due to the P2P scandal, the listing is basically hopeless.
Bitmain has been caught in the cusp of controversy. In the BCH hash war, although Jihan Wu had the upper hand, BTC and BCH took a major dive afterwards, as it may be a war without victory as a result. It was reported that Bitmain would cut 50% of its staff, but it was then denied by the company officially. Whether Bitmain will be listed remain uncertain.
For these mining machine companies, their main source of income is mining machine sales. With the depressed digital currency market, mining machine business is difficult to make profits. Problems such as single product structure and weak market demand will put the mining machine company at a disadvantage in the bear market. Both the transformation and the preparation for winter require a large amount of capital investment. If their listing process is not completed within three years, the following road will be difficult.