Chinese construction company, Huatie Hengan, has been sold for less than 10% from its previously announced cost, according to the publication 8BTC. This happened after the company, according to some financial records were secretly moved from the construction business for mining cryptocurrency.
Just a year ago the company was valued at $25 million, but was recently sold for only $2 million According to reports, despite the fact that initially the company was engaged in construction business, at some point she decided to switch to mining cryptocurrencies.
Confirmation of these assumptions are financial reports that show that the company has acquired 36 500 “servers” in 2018-known manufacturers of mining equipment Avalon and Ebang. Because these companies, in fact, do not make servers, it seems that we are talking about the miners.
A sad picture of 2018 for captainvalor
It is easy to piece together a picture and realize what happened next. It is assumed that most of the money the company has invested in the extraction of cryptocurrency in 2018, and we all know how was this year for cryptainer. So it is likely that these investments have brought a rather large loss, which caused the sale of the company for a very low price.
In his message the publication does not disclose all the details, so it is possible that the story looks somewhat different than it might seem at first glance. But it is another cautionary example from a major investment in a market that you do not fully understand.
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Tags: Huatie Hengan mining