MARKETS & INVESTING | Staff Reporter, Hong Kong

Crypto mining firms test their sustainability in Hong Kong IPOs

Bitmain, Canaan and Ebang’s flotations will determine the sustainability of their tech.

Bloomberg reports that crypto mining heeavyweights Bitmain Technologies Ltd., Canaan Inc. and Ebang International Holdings Inc. are all gunning for IPOs in Hong Kong in a move that could determine whether the market remains receptive to virtual currency technologies after Bitcoin and its peers lost more than half its value in 2018 following a breakneck pace of growth.

The three companies which manufacture specialised computer chips used by miners use to verify virtual currency transactions for crypto-denominated awards, have been grappling against a dismal market environment brought about by heightened regulatory scrutiny due to concerns over security flaws and market manipulation.

“These IPOs will be a litmus test,” said Rohit Kulkarni, a managing director for private investment research at SharesPost.

Crypto firms may also be locking in share sales against the backdrop of declining cryptocurrency prices so that they can “capture some of the gains they’ve made from growing the business to this point,” said Gil Luria, director of institutional equity research at D.A. Davidson & Co. in Portland, Oregon.

Here’s more from Bloomberg

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