Bitcoin Cash Surges 20% After Bitmain Files For IPO
Bitcoin cash rallied today, climbing more than 20% after Bitmain filed an application to hold an initial public offering (IPO).
The digital currency, which is a fork of the original bitcoin, climbed to $538.37 at 12:04 UTC on CoinMarketCap.
At this point, bitcoin cash was up 23.7% from the start of the day, reaching a nearly three-week high, additional CoinMarketCap data reveals.
Later, the cryptocurrency retreated slightly, trading at $519.03, but was still up more than 20% in the last 24 hours.
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When explaining the sharp increases in the price of bitcoin cash, several analysts emphasized the key role played by Bitmain's recent IPO announcement.
"This spike was definitely caused by Bitmain's IPO filing," said Mati Greenspan, senior market analyst for social trading platform eToro.
Bitmain, one of the world's largest digital currency miners, filed a prospectus for the offering on Wednesday, indicating its intention to offer securities to the public, according to CoinDesk.
The document reveals that the company brought in more than $700 million worth of profit during the six months ending June 2018, MarketWatch reported. This figure represented an 800% increase over the same time in 2017.
The filing also indicates substantial growth in top-line performance, as Bitmain's revenue was $2.8 billion during the period, a ten-fold increase from the same time last year, according to MarketWatch.
Filing's Timing 'Impeccable'
The timing of the IPO filing was "impeccable," said Greenspan, "as the price began to rise within moments of the news release. They also opened up their financial records for the first time, which revealed that they're in excellent standing."
Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet, also noted the impact that the offering developments had on bitcoin cash.
The filing "definitely influences the price," he stated.
"It has been no secret that Bitmain holds massive amounts of BCH, but now that they are going public they are going to fill their already immense treasure chest with more money, and I’m confident a good chunk of it will go towards the development of BCH. Exciting times ahead for Roger and Jihan."