Apr 25, 2019 06:00 UTC
Apr 25, 2019 at 06:03 UTC
Chinese Crypto Mining Firm that Lost 90% of its Value Sold
Huatie HengAn is a crypto mining wing of a construction firm in China. It has lost about 90% of its value prompting its parent company to sell it.
According to the 8btc local media outlet, Huatie is listed publicly. The sale saw Huantie pocket roughly 1.8 mln US dollars that counts 12 million yuan with the value of the digital currency mining company decreasing by 90% from the initial approximately $25.3 million it has worth in less than a year.
Though Huatie HengAn professes to specialise in cloud computing services, it is undoubtedly in the crypto mining business. The reality was deduced from its yearly financial report. According to the report, Huatie HengAn purchased more than 36,000 ‘servers’ from Avalon and Ebang. Avalon and Ebang are the strangers at and producing servers since they specialise in ASICs used in digital currency mining.
China’s digital currency community was reportedly keeping the tabs with the sale since Huatie HengAn makes history as the first crypto mining firm with ties to a company that’s listed publicly. Unluckily, the parent company faced losses to a tune of about $14 million. The parent firm had invested $25 million initially.
The local media outlet, 8btc, noted –
“Cryptocurrency mining firm’s revenue for the year amounted to $8 million with the net loss skyrocketing to nearly $23 million while the value of assets stood at $2 million.”
BitMEX is a platform specialised in cryptocurrency derivatives. It has recently indicated that Bitcoin SV miners have undergone a total loss of $2.2 million. China has a harsh history with digital currencies and recently said that it is currently working on exterminating crypto mining activities inside its borders. Chinese cryptocurrency mining is governed by the trading laws in specific jurisdictions such as Hong Kong.
Besides Huatie HengAn, the recent bearish market has been quite harsh for cryptocurrency miners. For instance, a leading Japanese IT firm, GMO reported a loss of $12 million from its crypto mining wing in 2018.