The Bitcoin Cash price (BCH/USD) has seen a sharp increase, following news that Hong Kong-based crypto mining giant Bitmain has filed for an initial public offering (IPO).
The fourth-largest digital currency on the market spent the better part of yesterday’s session trading sideways, locked within a tight range of $440-$450. This changed in the afternoon session, as the coin experienced a sharp uptick that lifted its price above the $500 mark for the first time in four days. Furthermore, the coin reached a three-week high of $542.52 in the final hours of the session. It eventually finished the day at $515.93, significantly higher than its opening level of $444.80.
Bitcoin Cash has been able to slightly extend its advance in today’s morning trading. Having reached an intraday high of $539.18 earlier, the Bitcoin Cash price is currently hovering around $520, according to data from digital currency tracker Coinmarketcap.
Some analysts have linked yesterday’s spike to a recent IPO announcement by one of the world’s largest cryptocurrency miners, Bitmain. As reported by Coindesk, the crypto mining giant yesterday official filed an application to go public on the Hong Kong Stock Exchange (HKEX). The company published an IPO prospectus, shedding light on, among other things, the company’s financial performance over the past few years. According to the document, Bitmain generated just over $2.5 billion in revenue last year, a massive increase from the $277,612,000 it made in 2016. The company also generated nearly $2.9 billion in revenue in the first six months of this year. The company’s profitability has also seen massive increase over the past couple of years.
Marouane Garcon, managing director of crypto-to-crypto derivatives platform Amulet, told Forbes that Bitmain’s filing “definitely influences the price” of Bitcoin Cash.
“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,” Garcon said yesterday, as quoted by Forbes.
In today’s trading, the Bitcoin Cash price stood at $517.40, as of 09:34 BST. The coin has gained nearly 17% over the past 24 hours.