The Hong Kong Stock Exchange (HKEX), the world’s seventh largest stock exchange by market cap, has expressed its ambivalence over the approval of Bitmain’s Initial Public Offering (IPO) proposal on account of the crypto market’s high volatility, particularly following the latest industry-wide price collapse.
In September, crypto mining giant Bitmain has filed an IPO application before HKEX, following on the footsteps of other major crypto mining firms, including Ebang and Canaan Creative. At the time, Bitmain has also disclosed plans of launching a new crypto mining hardware and expanding to new jurisdictions with a number of real property acquisitions.
However, following the massive price plunge across the crypto markets, HKEX has expressed its reluctance to list crypto mining firms.
As an undisclosed source was cited as stating:
“The exchange is very hesitant to actually approve these bitcoin mining companies because the industry is so volatile. There’s a real risk that they could just not exist anymore in a year or two. The HKEX doesn’t want to be the first exchange in the world to approve this and have one die on them.”
As it stands, neither HKEX nor Bitmain has issued any official statements regarding the IPO proposal.
While Bitmain would not be the first crypto firm to consider going public, most within the crypto community believe that it stood the best chance of succeeding compared to other previous IPO proposals.
Prior to Bitmain’s filing, Canaan Creative has also submitted an IPO application in May but has since lapsed after its six-month provision for processing, with Ebang’s IPO proposal also about to expire within the next two weeks.