BitMEX Reports Bitmain Needs Efficient Management to Reach 'Legendary' Status

The research arm of Bitcoin Mercantile Exchange recently analyzed leaked data about mining giant Bitmain to pinpoint fallacies and other investor accusations toward the mining business.

BitMEX researchers defined Bitmain, which is valued at $8 billion ahead of its public listing in Hong Kong, a technology player with "Legendary" potential, depending on how well its internal management conflicts are handled and future growth is chalked out.

Despite popular revenue, Bitmain is apparently facing "Highly visible losses" stemming from its alleged investment in stacking huge amounts of Bitcoin Cash.

With such negative implications aside, the research highlights that Bitmain is "Like the largest and most profitable" company in the cryptocurrency ecosystem, a point which could make the IPO attractive to several Chinese investors.

Polarized Thoughts on IPO. As per the leaked data, Bitmain earned nearly $14 billion in a pre-IPO with private equity firms.

Such interest makes BitMEX researchers conclude that the mining giant's potential IPO could secure earnings of over $20 billion, an amount double that of the market cap of Bitcoin Cash.

In terms of sheer manufacturing expertise, the researchers noted that Bitmain remains the undisputed king of mining operations and equipment suppliers across the globe.

Speaking about the varied benefits of investing in Bitmain's IPO, researchers noted BitMEX would not invest in the IPO, citing a myriad of issues threatening to limit the company's future growth, such as energy-intensive operations, which make it a less scalable business than internet companies.

The research expressed that retail investors may think otherwise, and view Bitmain as a viable investment.

"Bitmain can be a legendary crypto company, generating strong shareholder returns for decades to come, but in order to achieve this the Bitmain management team may need to improve their management of company resources."