via Bitmain.com

SoftBank Group Corp., a Japanese multinational holding conglomerate and notable Uber backer, has reportedly denied participating in the $1 billion pre-IPO investment round of Bitmain, a leading ASIC chip maker and crypto mining hardware manufacturer.

According to a recent report by Cointelegraph, neither SoftBank or Tencent Holdings, a Chinese multinational investment holding conglomerate, can be confirmed as investors in the crypto mining giant despite previous claims. The media outlet pursued the story after receiving an anonymous tip that neither company was not involved in any deal with Bitmain.

After reaching out to Softbank for comment, Cointelegraph learned that no business arm of the company was a participant in the latest funding round.

Neither the SoftBank Group Corp. nor the SoftBank Vision Fund were in any way involved in the deal.

Cointelegraph also noted that Bitmain refused to comment on the matter. We reached out to Tencent but have not received further clarification regarding the company’s participation in the deal.

Bitmain’s financial holdings were recently disclosed, as the company plans to raise $18 billion IPO on the Hong Kong Stock Exchange at a market cap of $40 to $50 billion later this year. While Bitmain currently claims a 50% net margin and has conservative estimates of $2 to $3 billion for its full-year profit, the company has lost more than $320 million in half a year from its holdings in Bitcoin Cash (BCH).

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We previously reported that Bitmain’s cryptocurrency-related losses could be a deterrent for major investors looking to participate in the company’s public offering. Other reports indicated that Bitmain lost an additional $600-700 million from a depreciation in the value of their inventory, as the company’s S9 miner prices dropped by ~85% in Q2.

Taken together, there are many unanswered questions surrounding the company’s previous financing rounds that should be answered prior to the upcoming IPO.

More: Uber’s Largest Shareholder SoftBank Denies Deal With Bitmain, Other Investments Uncertain
Related: Bitmain Has More Than $570 Million in Bitcoin Cash Holdings

Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.

Voyager

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