Would you buy an initial public offering of a company that made $1.4 Billion net profit in its last fiscal year?
How about if it’s a cryptocurrency mining company?
Bitmain filed to list on the Hong Kong exchange yesterday and the risks are aplenty.
With the cryptocurrency market in a down trending cycle now, the sales of crypto mining computers may be tailing off as well.
Moreover, more than half of its assets are parked in Bitcoins. Will regulators require Bitmain to mark them to market each quarter?
And the price for crypto mining equipment, like oil drilling rigs, apparently rises and falls with the price of Bitcoin.
So, hold on to your hats, cowboys!