Chinese mining equipment manufacturers Bitmain, Canaan Creative and Ebang faced a delay in receiving approval for their IPOs on the Hong Kong Stock Exchange.

Traditional exchange fears miners

Bitmain, Canaan Creative, and Ebang applied to the Hong Kong Stock Exchange (HKEX) for IPOs in 2018. As expected, Bitmain may hold the largest IPO among these three companies, with its market valuation reaching $18 billion.

Canaan and Ebang planned to raise about $1 billion via IPOs. But the bear market forced the HKEX management to doubt the future of the cryptocurrency industry. Canaan Creative application has already expired, and and the other two face a high bar in convincing HKEX.

“The exchange is very hesitant to actually approve these bitcoin mining companies because the industry is so volatile. There’s a real risk that they could just not exist anymore in a year or two. The HKEX doesn’t want to be the first exchange in the world to approve this and have one die on them,” reports Coindesk, citing an informed anonymous source.

A HKEX spokesman declined to comment on this information.

Bitmain in crisis

Meanwhile, the world's largest manufacturer of mining equipment, Bitmain, is in serious financial trouble. In addition to the bear market, Bitmain suffers from a radical drop in the price of Bitcoin Cash, in which Bitmain invested a lot.

In the III quarter, Bitmain allegedly incurred losses of $740 million, according to the Twitter-account BTCKING555, citing leaked financial reports.

According to BTCKING555, one of Bitmain's investors tried to liquidate his stock portfolio with an aggregate value of $1.5 billion at a price 90% less than these stocks were worth in August.