Bad investments: Bitmain has lost more than $ 300 million after the buy Bitcoin Cash
Source:According to the researchers , Bitmain took not the best to invest almost all their funds in Bitcoin Cash. However, the largest manufacturer of Asimov still considered «the best company in the world of cryptocurrency». About it writes .
theBitmain captures the world
Analysis of IPO Bitmain has prompted analysts to interesting conclusions. It turns out the company initial public offering due to pressure from its competitors. Another major manufacturer of Asimov Canaan Creative is also preparing for a new stage in its development.
However, while Bitmain has some problems.
Bitmain can become one of the largest companies in the world and give their investors exorbitant profits. However, to reach such heights, top management Bitmain needs to learn how to effectively manage production resources.
In 2017, the company earned 1289,7 million dollars. Approximately 69 percent of this amount (887,5 million) Bitmain has invested in a Bitcoin Cash. Figures may be slightly exaggerated because some of the coins went to the company for free after hard forks of Bitcoin in August last year.
A few months after Bitcoin Cash investments fell in value that resulted in the loss of more than $ 300 million. Moreover, in the first quarter of 2018 Bitmain earned only 25 million dollars (most likely due to large prepayments to the main chip supplier TSMC). Assets Bitmain, in fact, remain illiquid company can not sell all their bitcoins for Cash without a serious collapse of the price of the asset.
Analysis reports and balance sheet of the company opened three main leadership Bitmain:
the-
the
- huge prepayment TSMC (about 866 million dollars in 2017) weakened working capital of the company; the
- great balance of inventory ($1.2 billion) indicates overproduction; the
- large portfolio ($1.2 billion), which mainly consists of altcoins.
Some of the biggest mistakes Bitmain (overproduction and buying altcoins in a bull market) is similar to the typical behavior of the mining company. For example, mining firms often invest in high-cost assets in a bull market, and then unable to invest in high-quality low-cost assets in a bear trend.
Perhaps not quite fair to blame the management Bitmain. Greed, fear and emotions can affect us all. Therefore, even though Bitmain and made mistakes, they are not unexpected or unusual.
In Order to prevent blunders like the Jihan Wu, calculate their cryptoform on the advice of our . Also don't forget to visit the pool here.
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