Managing partner at American investment Fund Capital Multicoin Kyle Samani is confident that the financial problems of Chinese mining giant Bitmain will likely put pressure on the price of cryptocurrency Litecoin (LTC) and Bitcoin Cash (BCH).
This is extremely bearish for BCH and LTC
The only reason to make this drastic cuts are because you’re about to run out of cash
Meanwhile, they still have 1 BCH and 1M LTC on their balance sheet. Those are going to be liquidated soon to keep the lights on https://t.co/kneSRcK2li
— Kyle Samani (@KyleSamani) 26 grudnia 2018 R.
Samani believes that the reduction of 50% of the employees Bitmain is a clear sign that the company has serious financial problems. According to him, the mining giant in the reserves there are significant reserves of BCH and LTC. Therefore, the coins are likely to be sold to keep the company afloat.
According to operating Director Blockstream Samson MOU, Bitmain plans to cut 50 and 85 percent of the staff, getting rid of minor business areas. In particular, curtailed the initiatives associated with artificial intelligence.
Reports in China are now saying that Bitmain layoffs are likely to be as high as 85%, not 50%. All non-essential business units are cut. Teams working on AI initiatives are decimated. #BitmainIPO https://t.co/wOrfUYukpg
— Samson Mow (@Excellion) 26 grudnia 2018 R.
We will remind, according to some, the losses Bitmain in the third quarter could reach $740 million
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