Thanks to an investment seeking IPO announcement made by Bitmain earlier in the day, Bitcoin Cash set the markets on fire today. Bitmain is a major maker of cryptocurrency mining hardware, and very popular among retail and commercial mining communities.
The BCH price spike pushed past a historic high of $570 (as of writing this), setting a scorching pace for other popular decentralized currencies to follow. However, Bitcoin Cash is still very far from its all-time high of $4,090 that was reached on December 20, 2017.
Strategically Bitmain played for high stakes, by announcing the first-ever financial report of the company and setting itself up to attract valuable investor action.
While the price spike experienced by Bitcoin Cash appears to be an auto-response to the IPO announcement, that is far from the truth. As a financial instrument, an IPO is defined as an offering which allows investors to hold stocks of the company and sell it in the public domain. The offering by Bitmain is therefore viewed as a perfect opportunity by the Bitcoin Cash community to hold a stake in the highly-rated manufacturer of mining hardware, for the very first time.
While the response to the news of the IPO was lukewarm, it was only with the filing of the all-important financial report by the mining equipment maker that the prices of the crypto began to make substantial gains on market floors.
The public filing of the report by Bitmain provided the much-needed figures and numbers that high-value crypto investors seek when making an investment decision. The financial statement had all the key facts and figures that are appropriate for attracting the discerning investors and the crypto-curious alike.
The gist of the financial report proved that the manufacturer had a much stronger first six month of the current fiscal year, showing profits of $742.7 million based on a revenue flow of $2.8 billion. The company also revealed that much of Bitmain’s income had come from Bitcoin mining rigs which brought in over $1.9 billion in revenues, in comparison to the previous years’ results. Another revenue segment which should have significant growth was the sale of various mining equipment. Currently, Bitmain’s first-half financial report shows a whopping 800% increase for the same fiscal period in 2017, thus demonstrating that the top-line performance has been nearly 10-times (10x) higher.
The secret relation between Bitcoin Cash and Bitmain
Though there is no contractual association between Bitmain and Bitcoin Cash, the community has expressed positive investor sentiment, and that impacts the long-term value of Bitcoin Cash. But Marouane Garcon, the Managing Director of Amulet, a derivatives platform for cryptos states that “It has been no secret that Bitmain holds massive amounts of BCH.” The analyst expects that the inflow of investor funds through the IPO will be used for developing BCH further.
The post Bitcoin Cash Surges 22% following Bitmain’s IPO Announcement appeared first on CryptoPotato.
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