Several reports indicate that popular crypto mining giant Bitmain could be cash-strapped. Co-founder of crypto-fund, Multi-coin capital, Kyle Samani appeared to indicate the same in his tweet, where he suggested that Bitmain looked set to liquidate some its crypto-assets in order to accumulate fiat funds to run its business operations. Samani also went on to cite several reports that had accused Bitmain of laying off half of its staff.
As of the time of the media reports, Bitmain is said to have had in its possession Crypto holdings worth $315.5 million. Whether Bitmain has liquidated some of it holdings have not yet been revealed, though the fact that it holds so much reveals the possibility of a sale in case the crypto miner feels short of cash.
Despite the bearish state of the markets throughout 2018, Bitmain just like any other crypto retail investor is unlikely to liquidate its Bitcoin reserves. This is because there is a lot of investor confidence that 2019 will see a change of fortunes in the markets for Bitcoin, Bitcoin cash as well as a host of other crypto assets.
Indications show that Bitmain could get rid of its Bitcoin cash holdings though, with the miner laying off the Bitcoin cash development team earlier in the year. Bitmain had benefited largely from the crypto euphoria of 2017 but things have blown cold throughout 2018 forcing the firm to have to rethink its strategy as well as its priorities.
Bitmain is set to go public soon, with a 12 Billion IPO set to be offered. This could save them from having to liquidate valuable crypto assets or layoff precious staff, as they seek to survive the market’s most depressive period.