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How Much of the 20% Surge of Bitcoin Cash is Affected by Bitmain IPO?

Over the past 24 hours, Bitcoin Cash recorded a 20 percent surge in its price as the best performing cryptocurrency in the global market. Within merely hours, the price of BCH increased from $440 to $540, by more than 25 percent at one point. Analysts have attributed the price increase of BCH on September 27 to the successful initial public offering (IPO) filing of Bitmain with the Stock Exchange of Hong Kong Limited.

In early August, a Bitmain investor deck was leaked to the public by an insider within the company. The document detailed the holdings of Bitmain in various cryptocurrencies including Ethereum, Bitcoin and Bitcoin Cash. The deck disclosed that Bitmain has held more than 1 million Bitcoin Cash since late December, accounting for nearly 6 percent of the entire circulating supply of the cryptocurrency. At the time, cryptocurrency analyst Cobra stated:

“Bitmain holding 1M+ BCH is a very powerful statement that they have skin in the game and put their money where their mouth is. It’s a good and calculated move, and it’s not wise to underestimate them.” However, the 1 million BCH holdings of Bitmain triggered controversy in the cryptocurrency sector as investors started to attribute the IPO of Bitmain as a way to liquidate its holdings of Bitcoin Cash, even though it only represents about $540 million, which is less than 50 percent of the company’s quarterly profit of $1.1 billion.

The document also revealed a healthy balance sheet of the company, which emphasized an impressive 74.5 percent market share over the cryptocurrency mining equipment manufacturing sector and a staggering 328.2 percent yearly revenue growth since 2015.

Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet, added that the large holdings of BCH by Bitmain likely increased the confidence of investors towards the asset.

How Much of the 20% Surge of Bitcoin Cash is Affected by Bitmain IPO?, NewsBTC, Sep 27

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