A research unit for crypto exchange BitMEX analyzed recent data on Bitmain which was leaked to Twitter earlier this week. According to the report published on BitMEX blog Thursday, August 30, the Chinese mining giant has “legendary” potential, but future success will depend on skilled management. Discussing the source of leaked Bitmain financial data — apparently a Twitter account @brian_trollz — BitMEX states that it has “reason to believe the authenticity of these documents.” According to the research, one of the most interesting discoveries in leaked pre-Initial Public Offering (IPO) documents is that Bitmain’s mining farm business has significantly declined. While mining activities consisted of 18.4 percent of Bitmain’s total revenue in 2016, BitMEX states that, in the first quarter of 2018, the percentage of Bitmain’s revenue from mining was 3.3 percent. BitMEX notes that Bitmain is highly likely facing visible losses, which may be due to allegedly investing the majority of its operating cash in 2017 in acquiring Bitcoin Cash (BCH). The report estimates potential mark to market losses of $328 million.
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