Plans for cryptocurrency Hong Kong IPO shelved amid bitcoin slump

Bitcoin experienced astonishing growth in 2017 to peak at a record $19,500 by the end of that year, but has since crashed to stand at about $3,980. (AFP)
Updated 27 March 2019
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Plans for cryptocurrency Hong Kong IPO shelved amid bitcoin slump

  • Bitmain Technologies has allowed its IPO application to lapse, six months after it was initially filed in September
  • ‘The bear market at the end of 2018 brought both challenges and opportunities that Bitmain will work hard at addressing in 2019’

HONG KONG: The world’s largest maker of cryptocurrency mining chips has shelved plans for an ambitious initial public offering in Hong Kong, becoming the latest victim of bitcoin’s price plunge.
Bitmain Technologies said Tuesday it has allowed its IPO application to lapse, six months after it was initially filed in September aiming to raise up to $3 billion, according to Bloomberg News.
Under Hong Kong’s listing rules, applications expire half a year after filing.
“We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value,” the Beijing-based company said on its blog on Tuesday.
“The bear market at the end of 2018 brought both challenges and opportunities that Bitmain will work hard at addressing in 2019,” it said, adding it would restart its application “at an appropriate time in the future.”
Bitcoin experienced astonishing growth in 2017 to peak at a record $19,500 by the end of that year.
But investors feared a speculative bubble and it has since crashed to stand at about $3,980 per unit following months of volatile trading.
The virtual bubble burst — followed by what has become the worst slump in years — has made mining operations practically unprofitable.
Bitmain’s co-founders Micree Zhan and Jihan Wu became the richest cryptocurrency billionaires to appear on a list by Hurun Report last year of China’s wealthiest people.
The entrepreneurs have stepped down from their roles as CEOs and were replaced by Haichao Wang, the statement said, but it added the pair would continue to guide the company’s strategic development as directors.
In addition to a leadership reshuffle, the announcement also alluded to layoffs made at the end of last year and described them as “a difficult but necessary decision.”
It did not say how many employees were affected.
Other manufacturers have faced similar hurdles recently.
Bitmain’s rival Canaan saw its listing application expire in November.
Mining chip maker Ebang is still pursuing a Hong Kong IPO after refiling its application in December.


Indonesia looks for investment opportunities in Yemen

Updated 20 September 2019

Indonesia looks for investment opportunities in Yemen

  • Indonesia’s ambassador to Yemen expressed Indonesia’s interest in various fields
  • There are currently more than 2,500 students from Indonesia studying in Hadramout

DUBAI: Indonesia’s ambassador to Yemen discussed investment opportunities in the country with Yemeni officials in Hadhramout on Thursday, Saba News reported.

Hadhramout Local Authority and Leaders of Industrial and Commercial Chamber of Hadramout met with Ambassador Mustafa Tawfiq to discuss ways to strengthen trade exchange between the two countries.

The ambassador expressed Indonesia’s interest in various fields including scholarship programs and training for small business.

“In light of the current situation in Hadhramaut and the security and stability achieved, commercial and industrial relations between Hadhramaut and Indonesia are witnessing a remarkable and significant development in this aspect,” Tawfiq said, calling for increased visits between businessmen in Hadramaut with their Indonesian counterparts to expand the economic partnership between the two sides.

Meanwhile, Assistant Deputy Governor of Hadhramout for the Valley and Desert Districts Affairs, Abdulhadi Al-Tamimi welcomed Indonesia’s interest in investment opportunities, praising the historical relations between Yemen and Indonesia.

There are currently more than 2,500 students from Indonesia studying in Hadhramout, Al-Tamimi said.

The Indonesian envoy welcomed local businessmen to visit Indonesia next month where Jakarta will hold the 43rd Trade Expo where more than 1,100 companies will be participating.

However, the Yemeni official raised the issues of obtaining visas to Indonesia after the embassy’s move to Amman, Jordan from Sanaa after the Houthi militia took over the Yemeni capital.