The Chinese mining titan Bitmain Technologies has quietly filed an IPO application with the US Securities and Exchange Commission (SEC).
30 October, 2019, | AtoZ Markets – Bitmain, a crypto operating company, is in talks with the US Securities Exchange Commission (SEC) on a possible launch of an initial public offering in the country after a failed launch on the Hong Kong exchanges in March this year. This decision is part of a long internal quarrel between the two principal shareholders of the company. They are Jihan Wu and Micree Ketuan Zhan.
Bitmain Plans To Enter The US Market
According to the informed sources, Bitmain filed an IPO application to the SEC with Deutsche Bank as a bank lender in the transaction. The company will now wait for a call from the agency. That is to appear before the commission and explain the need for an IPO of Bitmain. If they can convince the commission, they will be eligible to begin the process of applying for listing on the US securities markets.
The company applied for listing on the Hong Kong securities exchanges in 2018. But the bear market that lasted throughout the year discouraged them from launching their IPOs. The mining company dropped the filing period in March of this year. Plus, the world began to experience cracks in senior management. The quarrel between Wu and Zhan appears to have intensified following the recent dismissal of Zhan by Wu from the position of executive director while he was away on company duty.
Jihan Wu and CFO Liu Luyao are currently in charge of the IPO plans. Furthermore, they will lead the company in future SEC investigations over the next two to three months.
Zhan Is Fired In The Middle Of The IPO Launch
Micree Zhan was co-founder of Bitmain with Wu. Yet, he was dismissed while on a business trip. Also, Zhan is accused of mismanagement of funds and misdirection of the mainly developed Bitcoin mining company.
Wu filed dismissal actions against Zhan after receiving calls from distress employees and firing senior officials to run the business. Moreover, Wu is currently trying to regain the support of the company's top executives. However, he hopes to continue the IPO despite Zhan's threats of legal action.
To ensure the success of the IPO process, the company acquired the services of former NASDAQ representative in China, Zheng Hua, as a consultant within the company. Further, it is part of a significant investment in the largest mining facility in the world to be opened in Texas.
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