By Shelly Melancon (Switzerland)
The ripple effect of China’s mining ban is still being felt across the crypto mining industry. Popular crypto mining hardware manufacturer, Bitmain has announced a demerger move from the world’s largest mining pool, AntPool. The move from the mining hardware manufacturer instigated speculations that it plans to file for an IPO.
Bitmain reported the latest development via a post on its official WeChat page. According to the firm, after receiving an approval from its shareholders in Q1, 2021, it completed all paper works concerning the demerger on the first day of May.
Now we are engaged in follow-up business arrangements and will complete related activities as soon as possible,”
On its part, AntPool used to be the world’s largest mining pool until China’s mining ban. The ban set back its operations on a large scale, leading to a massive drop in the firm’s hash rate. Notwithstanding, AntPool still retains a substantial portion of the global hashing power on Bitcoin mining. According to available data, AntPool’s computing and electrical power accounts for 18% of the entire hashing power, placing it at the top echelon on the list of mining companies.
Bitmain to Restrict Itself to Producing Mining Hardware
Bitmain will streamline its activities to produce mining hardware, including chip research and development, according to its WeChat post. On the other hand, AntPool will continue its mining operations in other regions and also with fresh shareholders. China is no longer home to a lot of mining companies including AntPool as it has issued miners a quit notice since May.
While there is no definite reason cited by Bitmain as being responsible for the demerger, speculations are rife on the premise that Bitmain is trying to avoid the regulatory hammer falling on Chinese miners. In the wake of the ban, mining difficulty plunged by 28%, the lowest recorded since the inception of Bitcoin mining. Bitmain is not the only company halting mining operations. Another mining firm, BitDeer sold off its mining rigs to a US-based mining firm BIT Mining, which was formerly a lottery company.
Bitmain Submit Applications for IPO Twice, Both Rejected
Meanwhile, on two occasions, Bitmain had already filed for an IPO, but its applications were rejected. Its first application in 2019 for listing in Hong Kong did not yield any result. Another application to the US SEC was utterly rejected. Bitmain has also been involved in a power tussle controversy between its two co-founders. However, one of them stepped down earlier this year paving the way for the other co-founder to take over.
China’s mining ban has set back the global hash rate and mining difficulty of Bitcoin by a large percentage. As Chinese miners continue settling in crypto and mining-friendly regions, a rebound is being observed. China has lost its place as the largest region for mining operations by virtue of its ban. Recently, Bloomberg expert Mike McGlone predicted doom for China’s economy based on its rash decision. Chinese authorities claimed they were trying to protect the country from carbon pollution.
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