Bitcoin Cash or BCH recorded a sudden and rapid price rise over the last 24 hours. BCH grew by an astonishing 25% in value in a short span of just a few hours. According to the market analysts, this is in large part due to the hugely successful Bitmain IPO at the Hong Kong Stock Exchange. The correlation may seem fairly simple at the outset, but there is a background to the story.
Bitmain’s investor presentation has been leaked to the public by an anonymous insider in the first week of August this year, attributed to an insider in Bitmain. It elaborated primarily on Bitmain’s holdings in several important crypto currencies which included a massive 1 million holding in Bitcoin cash, almost 6% of the total amount of bitcoin cash in circulation at the time, sometime last December. An analyst had, at that time, noted that the huge holding showed Bitmain’s mettle and that they should not be underestimated. The controversy at the time centered around Bitmain’s possible motive to liquidate it’s huge cache of BCH. As Bitmain officially released its IPO documentation on 26th September filed with the Hong Kong Stock Exchange, it simultaneously led to the surge in Bitcoin Cash pricing. It also showed a “healthy” balance sheet, revealing an astounding 328.2% YoY revenue growth for the last 3 years.
According to another prominent industry expert and the managing director of an exchange platform, the massive holdings in BCH clearly showed the direct correlation of the IPO with the high level of confidence from investors on BCH, adding that she was confident that in the post IPO phase, Bitmain would allocate a large chunk of the proceeds towards further development of BCH. Bitmain currently holds a 74.5% market share in the crypto currency mining equipment market.