Japan’s SoftBank Denies Reported Deal with Bitmain

Japanese multinational holding conglomerate SoftBank has released an official announcement denying any involvement in the reported investment deal with Bitmain.

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Uber’s largest shareholder and Japanese multinational holding conglomerate SoftBank has released an official announcement denying any involvement in the reported investment deal with Bitmain.

SoftBank denies investment report

Reports surfaced last week that SoftBank will be investing in Bitcoin mining giant Bitmain, but the company has now they have no such agreement.

The mining giant has already concluded a pre-Initial Public Offering (IPO) financing deal which had brought its valuation to $15 billion. There were reports that Chinese tech conglomerate Tencent and SoftBank were involved in the deal.

Cointelegraph contacted both Tencent and SoftBank for confirmation after it received an anonymous tip that the two firms do not have any deal in place with Bitmain.

When asked about the reported deal, Kenichi Yuasa of the Corporate Communication Office of SoftBank Group Corp. stated:

NEITHER THE SOFTBANK GROUP CORP. NOR THE SOFTBANK VISION FUND WERE IN ANY WAY INVOLVED IN THE DEAL.

Tencent meanwhile has not responded to Cointelegraph’s confirmation or denial request, thus it is still unclear if the Tencent has an agreement in place with Bitmain.

Chinese publication QQ first ran the story about SoftBank and Tencent’s participation in a deal with Bitmain on August 14. QQ in a Google Translated version of the article stated that:

THE MAINLAND OFFICIALLY COMPLETED THE PRE-IPO ROUND SIGNING. THIS ROUND OF INVESTORS INCLUDES TENCENT, SOFTBANK [SIC], AND CHINA GOLD. THE CURRENT ROUND OF FINANCING IS 1 BILLION US DOLLARS, AND THE PRE-INVESTMENT VALUATION IS 14 BILLION.

The report had a ripple effect

After the original report, SoftBank and Tencent didn’t confirm or deny any investment agreement with Bitmain.

Other mainstream media channel s like Business Insider picked up the report from QQ, adding that Bitmain had closed a $1 billion funding round led by Chinese tech giant Tencent and Japan’s SoftBank. Business Insider credited crypto media site CCN as their source.

Another media house, Yahoo Finance also reposted the story on Bitmain’s valuation from CCN, while linking the coverage of the issue to CoinDesk.

Media houses continue to report that SoftBank and Tencent allegedly participated in a deal with Bitmain, bringing the company’s reported valuation to $15 billion.

Blockstream CSO Samson Mow tweeted August 11 an image which shows that Bitmain allegedly had a large amount of Bitcoin Cash (BCH).

Samson Mow on August 12 tweeted two images of Bitmain’s Q1 results, one in Chinese and one from Morgan Stanley. He commented that:

WHY IS BITMAIN RAISING CAPITAL SO FAST & ONLY SHOWING Q1 RESULTS TO PRE-IPO INVESTORS? WE’RE WELL INTO Q3 NOW. THE REASON IS Q2 WAS A DISASTER. BITMAIN IS SITTING ON A MASSIVE $1.24 BILLION USD IN INVENTORY & S9 PRICES DROPPED BY ~85%! Q2 LOSSES RANGE IN THE $600-700 MILLIONS.

Crypto Herpes Cat published a report on Medium which tried to explain how Bitmain ended up with so much BCH other than by selling BTC for BCH, as Mow purported. The report also explained what they are doing with their ASIC miners in the current market situation.

Crypto Herpes Cat wrote:

HOW DO YOU REALIZE THE VALUE OF THIS MONOLITH CRYPTO BUSINESS AND YOUR HOLDINGS? YOU IPO AND PASS THE BAG ON IN ONE HUGE LUMPED STOCK OFFERING AND HOPE INVESTORS DON’T REALIZE ALL OF YOUR CURRENT ASSETS ARE VERY, VERY ILLIQUID.

Back in June, the CEO of Bitmain Jihan Wu noted that the company was planning to launch its IPO on the Hong Kong Stock Exchange. Chinese publication QQ recently suggested that Bitmain is currently valued at $30 billion.

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