Bitmain, the once high-flying maker of hardware used for massive calculations needed to create cryptocurrencies, is coming down to earth. The company announced Tuesday that it had let lapse its application to list shares on the Hong Kong stock exchange.“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 company said in a statement on its website.
The end of Bitmain’s efforts to go public also marks a low point for Hong Kong’s chances of becoming a hub for crypto companies looking to tap public markets. Regulators have expressed skepticism about the sector.
Still, some crypto companies have found another way onto the bourse, by doing what’s called a reverse merger, a process whereby they basically take over an already listed company. That appears to be the plan adopted by exchanges OKCoin and Huobi, and tech company ANX, which took controlling stakes in listed companies.
Bitmain left the door ajar for a future listing. “We hope regulatory authorities, media, and the general public can be more inclusive to this young industry,” the company said. “We will restart the listing application work at an appropriate time in the future.”