Continuous staff cuts at digital currency giant Bitmain might trigger a new wave of BCH and LTC sell-off, says a renowned digital currency financier, Kyle Samani.
The crypto-focused VC has recently stated that BTC cryptomining colossus, per hearsay reports, has little money left to keep on running its cryptomining and blockchain activities. The insufficiency of funds has caused the Chinese company to cut down its staff, allegedly by at least 50%. To finally make its ends meet, Samani predicts that Bitmain is most possibly going to get rid of its digital currency stockpile, which involves a great number of LTC and BCH coins.
The bearish predictions of Samani are based on the purported financial report of Bitmain that leaked earlier this summer. In the event that the report turns out to be true, then its means that at the time the firm owned approximately 931,000 LTC coins and 1 million BCH coins. Per the present trading rates, Bitmain has to be in possession of nearly 28.6 million dollars’ worth of LTC coins and an astonishing amount of BCH coins, equating to 177 million dollars. The firm, up to the moment of press time, has not provided any verification as to the nature of the financial document and its credibility.
The leaked data also displays that BTC, DASH, and ETH also form a part of Bitmain’s portfolio, with respective ownership of approximately 84 million, 26 million, and 142,000 US dollars’ worth of digital assets. Altogether, Bitmain owns 316 million dollars’ worth of digital currency reserves, given that the firm has not yet dumped even the smallest part of it since this August.