Bitmain may be affected if Bitcoin’s price falls post-halving
Crypto-mining equipment manufacturing firm, Bitmain, has been all over the news following the controversial change in its management. It made headlines after Co-founder Jihan Wu took over as CEO, with Micree Zhan ousted from the company. Bobby Ong, Co-founder of CoinGecko, spoke about the same and the Bitcoin halving after he appeared in a recent interview.
The price of Bitcoin seems to be contradicting the industry’s expectation of the price shooting up, months before and after the halving. While the block rewards for Bitcoin miners would be cut by half after the halving, the price should have ideally surged, Ong said. However, since that did not happen, it put a lot of miners in a frenzy. While several miners were looking forward to selling more hardware machines, Bitcoin’s price did not support the same, Ong added. Further, he pointed out that if the king coin’s price doesn’t increase next year, mining giants like Bitmain and Canaan would probably be in trouble.
“We were very worried that a lot of miners will probably shut down operations if the price does not increase.”
Since taking over the company, Wu has put forth a huge bet that the price of Bitcoin will soar. Apart from this, Wu seems to be going all-in on Bitcoin mining with the IPO filing. However, this raises the question of Bitmain’s position if the price plummets further. Commenting on the same, Ong suggested that the platform would be deeply affected. Despite the price of the coin dropping, Ong revealed that there has been a lot of interest among miners to purchase mining machines. Therefore, mining companies have to be bullish in order to sell these machines, he said.
Furthermore, while highlighting the fact that Micree Zhan is the largest shareholder of the company, Ong asserted that he had no idea how Wu managed to take back control of the company. According to Ong, Micree might file a lawsuit against Wu, adding that he hopes the issue is resolved before Bitmain loses any more market share.