The world’s biggest creator of cryptocurrency mining chips has shelved strategies for a determined IPO in Hong Kong, beseeming the newest target for bitcoin’s price fall.

Bitmain Technologies on March 26 states that it had permitted its application for IPO to lapse. 6 months after it was originally filed in the month of September targeting its elevation to approx. $3 billion. In addition, according to the listing rules of Hong Kong, the application gets expired after 6 months of 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 held on its recent blog that was published on March 26.

“The bear market at the end of 2018 brought both challenges and opportunities that Bitmain will work hard at addressing in 2019,” it stated. Adding that it might start over its application “at an appropriate time in the future”.

Bitcoin

Bitcoin experienced shocking growth in the year 2017 and recorded the topmost level of approximately $19,500 by the end of the year 2017.

On the other hand, investors were anxious about a speculative bubble. As well as it had since it crashed to stand at approx.  $3,980/unit succeeding months of unstable trading.

The virtual bubble surge trailed by what has turned into the worst slump in several years. Has made the operations of mining basically unbeneficial.

Co-founders of Bitmain’s- Micree Zhan & Jihan Wu became the wealthiest cryptocurrency billionaires to appear on a list by Hurun Report last year of China’s richest people.

The entrepreneurs have walked down from their parts as CEOs and were substituted by Haichao Wang, the report said. However, it added that the duo will continue to guide the organization’s strategic expansions as directors.

In addition, to the guidance rearrangement, the announcement also suggested to layoffs prepared at the end of 2018 & termed them as “a difficult but necessary decision”.

Besides, it did not state how many workers were impacted. Also, recently several other industrialists have faced similar types of hurdles. Bitmain’s opponent Canaan observed it’s listing applications expire in November.

Mining chip maker Ebang is even now following a Hong Kong IPO after refiling its IPO submission in December.