August 21, 2018

DST Global Denies Bitmain IPO Investment Few Days After SoftBank, Tencent’s Involvement Called Into Question

Investment firm DST Global has confirmed that it “has never invested” into the cryptocurrency mining giant Bitmain’s pre-IPO in an email to Cointelegraph August 21.

Cointelegraph received an anonymous tip today, claiming that DST Global has not participated in Bitmain’s $400 million funding round earlier this year, despite reports to the contrary.

After being asked to confirm the rumour, John Lindfors, a managing partner at DST Global, has said this in an email to Cointelegraph today:

“I can confirm that DST has never invested in Bitmain.”

The news follows days after another major player, Uber’s largest investor SoftBank, told Cointelegraph that reports about its participation in Bitmain’s initial public offering (IPO) were also false.

“Neither the SoftBank Group Corp. nor the SoftBank Vision Fund were in any way involved in the deal,” a spokesperson said August 18.

Also today, Chinese multinational Tencent has allegedly denied involvement in Bitmain’s IPO, according to a Hong Kong news outlet AAStocks.

According to the publication, China’s largest technology entity by market cap confirmed that “the company did not take part in the investment of Bitmain Technologies.”

As of press time, Tencent had not responded to requests from Cointelegraph to confirm the AAStocks report.

The news nonetheless increases the already controversial nature of Bitmain’s IPO plans, which centers on the company’s bitcoin Cash (BCH) holdings, rumoured poor Q2 sales and the general underperformance of cryptocurrency markets this year.

Cryptocurrency industry and well-known community commentators reacted warily to a pre-IPO investor deck disclosure earlier this month, Blockstream CSO Samson Mow describing the planned flotation as “incredibly risky for any investor to buy into.”

“They purposely didn’t include the Q2 numbers for Pre-IPO buyers since they were a disaster… They told Pre-IPO buyers they would use some of the money to buy more BCH,” commentator WhalePanda meanwhile added during a Twitter debate before the SoftBank news.

As of press time, Bitmain has not responded to Cointelegraph’s request for commentary.

Published at Tue, 21 Aug 2018 20:12:00 +0000

bitcoin

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April 3, 2017

Jim Rickards: Debt, The Death of Money and Gold

wallstreetexaminer.com / by Craig Wilson via The Daily Reckoning / April 3, 2017

Jim Rickards joined Greg Hunter of USAWatchdog to discuss his book The Death of Money and the debt ceiling issues facing Trump and Congress. During the interview the two discuss everything from what to expect from Federal Reserve policy to gold prices in the coming months and years.

To start out the interview Jim Rickards was asked on the national debt where he contends, “The debt ceiling is very important. The United States runs budget deficits year after year. In the last 50 years we have only had minimal surplus years under Nixon and Clinton. We currently have $20 trillion of debt. The Treasury cannot just borrow however much they want. The U.S Congress limits the Department of the Treasury’s ability to borrow, what is called the debt ceiling. When the Treasury wants to borrow more, you have to raise the ceiling ceiling by the legislative process – an act of Congress.”

“Officially the existing debt ceiling ran out on March 15 and the Treasury cannot borrow any more money. Right now the Treasury is within tax season so it has positive cash flow. They have more in than going out and will not need to borrow at the exact moment. That is strictly temporary and a function of tax season in. Once we get through April, the shoe is on the other foot.”

“They’re going to hit a “hard ceiling” probably by August, if not sooner. Then the issue becomes whether Congress gives the Treasury the authority to borrow more money. The problem is when passing a debt ceiling bill, the “strings attached” deals that come with them. You gain some members in doing deals and lose others. We saw that with the health fiasco and the repeal of Obamacare failed not because of Democrats but because of Republicans who could not agree amongst themselves.”