Analyst Questions Bitmain's Revenue as Crypto Miner Seeks IPO

Crypto mining giant Bitmain may be losing its advantage in developing miners amid other potential cash-flow issues, according to a new report. Analysts with research firm Alliance Bernstein said the company’s “cash flow appears to be questionable and the company may be gradually losing technological edge” in a report published Wednesday. The researchers note that Bitmain’s revenue in 2017 fell below estimates after the company stored a large number of its miners’ components, rather than selling to customers, although its revenue still remained “remarkably high” for that year. Further, even though Bitmain dominated the mining device market with “77 percent unit share in bitcoin and ~85 percent in all cryptocurrencies last year,” declining cryptocurrency prices reduced some of that revenue stream. The bear market also impacted Bitmain’s holdings. The company holds roughly 5.7 percent of the total supply of bitcoin cash, which Bernstein says was “likely” acquired using its operating

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