OH SURPRISE SURPRISE…. An official from SoftBank has denied their involvement in the investment deal with Bitcoin (BTC) mining behemoth Bitmain that was reported last week by both crypto and mainstream media sources.
Popular Chinese publication, QQ was the first to release a report that clearly mentioned about the deal. The article (translated from Chinese) read,
“The mainland officially completed the Pre-IPO round signing. This round of investors includes Tencent, Softbank [sic], and China Gold. The current round of financing is 1 billion US dollars, and the pre-investment valuation is 14 billion.”
As previously reported by Cointelegraph, Bitmain had allegedly sealed a pre-Initial Public Offering (IPO) financing deal which had brought its valuation to $15 billion. Both Chinese tech conglomerate Tencent and Japan’s SoftBank — another tech giant whose 15 percent stake in Uber makes it the drive-hailing app’s largest shareholder — were purportedly involved.
After receiving an anonymous tip that Tencent and SoftBank were not actually involved in any deal with Bitmain, Cointelegraph reached out to SoftBank and Tencent for confirmation.
As a response to Cointelegraph’s request for information, Kenichi Yuasa of the Corporate Communication Office of SoftBank Group Corp. stated:
“Neither the SoftBank Group Corp. nor the SoftBank Vision Fund were in any way involved in the deal.”
Despite numerous requests for clarification, no one at Tencent has denied or confirmed the deal to Cointelegraph.
In response to a media request from Cointelegraph, Bitmain refused to comment on the matter.
After the story originally broke, there were no official confirmations or denials by either SoftBank or Tencent of their participation in an investment deal with Bitmain.
On August 12, Samson Mow also tweeted two images of Bitmain’s Q1 results, one in Chinese and one from Morgan Stanley, commenting:
“Why is Bitmain raising capital so fast & only showing Q1 results to pre-IPO investors? We’re well into Q3 now. The reason is Q2 was a disaster. Bitmain is sitting on a massive $1.24 billion USD in inventory & S9 prices dropped by ~85%! Q2 losses range in the $600-700 millions.”
In response to Mow’s tweets, Crypto Herpes Cat published a follow up on Medium, explaining several theories as to how Bitmain ended up with so much BCH — other than by selling BTC for BCH, as Mow purported — and what they are doing with their ASIC miners in a bear market, writing:
“How do you realize the value of this monolith crypto business and your holdings? You IPO and pass the bag on in one huge lumped stock offering and hope investors don’t realize all of your current assets are very, very illiquid.”
Cryptocurrency mining giant Bitmain is reportedly filing for an IPO to raise $18 billion from public markets. That amount means that the Beijing-based company is valued somewhere between $40 billion and $50 billion, making its IPO among the largest public offerings ever. Bitman has raised $450 million from investors and was valued at $12 billion in private markets during its last funding round, which occurred in June this year. According to a Coindesk report, the offering will be underwritten by ABC Capital Management. The listing is expected to occur on the Hong Kong Stock Exchange later this year or early next year.
The seemingly refuted investments come after a year of reports that appeared to indicate Bitmain’s astonishing profitability.