Bitcoin Mining giant, Bitmain, in deep debt, CSO of Blockstream gives proof

Things are not looking well for the one time most valuable cooperation in the cryptocurrency space. Bitmain, the former mining giant may be in deep debt, according to Chief Strategic Officer of Blockstream, Samson Mow.

In a series of tweets, Samson Mow explained about the troubles going on with Bitmain. According to him, one of the major concern is regarding multiple lawsuits that are being targetted on Bitmain. Moreover, their assembly, component, production, and repair companies haven’t been paid since January and due to which the number of lawsuits is piling up.

Also, Bitmain’s flagship miner S17 was sold at a loss (30% loss according to Samson Mow). Bitmain is in no position to sell their miner at 30% loss. This combined with low yield production signified Bitmain may be in deep trouble.

The company recently scrapped its IPO plan, after it was revealed that their books aren’t up to date. If the IPO had happened, Bitmain would have become the most valuable company in the cryptocurrency space.

Blockmanity’s Take

The real question regarding Bitmain troubles is “What happens to Bitcoin Cash if Bitmain announces Bankruptcy?”. It is well known in the cryptocurrency circle, that Bitcoin Cash is supported by the mining profits of Bitmain.

If Bitmain was to cease operations, Bitcoin Cash value can take a serious hit, as Bitmain itself holds $1 billion worth of Bitcoin Cash. In a bankruptcy case, the assets would be dissolved to pay back shareholders and existing clients, causing Bitcoin Cash value to drop sharply.

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Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.