While Bitmain Faces Investor Flak, BitMEX Rents Out World's Most Expensive Office

Two prominent, China-based cryptocurrency businesses are undergoing contrasting fortunes; while Bitmain is facing flak for several inconsistencies in its investor deck and competition from mining rivals, the Bitcoin Mercantile Exchange just moved into the world's most expensive office.

Bitmain's rise to the top has been nothing short of spectacular as well as controversial for its deep-seated ideologies favoring Bitcoin Cash.

The IPO has raised several eyebrows lately-courtesy of Bitmain's BCH stockpile, declining revenues from Bitcoin mining and, most recently, top investors denying their rumored involvement in the mining giant's last funding round.

Apart from the aforementioned, analysts at Sanford C. Bernstein & Co. believe Bitmain's woes run deeper than a stash of BCH, considering the company's once-mighty technology advantage redundant.

An analyst team, led by Mark Li, believes Bitmain must necessarily write down its inventory-in short, devaluing the company-to catch up with rival mining equipment makers, according to the South China Morning Post.

The company's sole mining chip provider, Taiwan Semiconductor Manufacturing, should additionally ask for upfront payments from Bitmain and avoid creating the production capacity to suit its demand, noted the analysts' report, adding "The competitiveness of Bitmain's chips is in question."

Bernstein acknowledged Bitmain's performance last year as a "Wild success," noting its impressive 85 percent market dominance of the crypto-mining sector.

The focus on Bitmain's finances has intensified, leading industry observers to investigate finer details of its business.

In this regard, local outlets in China reported that two rumored investors in Bitmain-Tencent and Softbank-categorically denied their involvements in the mining giant's upcoming IPO. Meanwhile, the downturn of Bitmain is in stark contrast to another China-based cryptocurrency business: BitMEX.Rising Fortunes in Bear Market.

Despite the bear market, the exchange has created deep pockets for itself in 2018, including enough to rent a floor for its office at one of the world's most expensive offices in Hong Kong.