Chinese cryptocurrency hardware maker and miner Bitmain Technologies Inc. has let its application to go public on The Stock Exchange of Hong Kong lapse, yet another sign that things are not going well in cryptocurrency markets.

Bitmain filed its application in September, reporting $2.51 billion in revenue in 2017, up from the $278 million a year earlier, with a $952.5 million profit.

But the wheels quickly started to fall off with a report in February claiming that the firm had lost $500 million in the third quarter. The company closed its Israeli research and development office in December, followed by the layoff of about 50 percent of its staff later the same month.

Founded in 2013, Bitmain is the largest global manufacturer of cryptocurrency mining equipment and also operates the world’s largest bitcoin mining operation. In both manufacturing the equipment used by cryptocurrency mining operations and mining bitcoin itself, Bitmain has been doubly exposed to the precipitous fall in the price of bitcoin that began in December 2017. At one point, things had become so bad on the hardware side that it was reported that bitcoin mining equipment being sold as scrap per kilogram.

Along with installing a new chief executive officer, Bitmain remains upbeat, saying it would look to refile for its IPO at some point in the future, though it didn’t say when.

“We do recognize that despite the huge potential of the cryptocurrency and blockchain industry, it remains a relatively young industry which is proving its value,” the company said in a blog post. “We hope regulatory authorities, media and the general public can be more inclusive to this young industry.”

Whether a future IPO application by Bitmain would be accepted is another matter. The South China Morning Post noted that Hong Kong regulators are unlikely to approve IPOs for any crypto-related business because of a lack of regulatory framework in the industry.

Bitmain’s main rival, Canaan Creative Co. Ltd., let its IPO application lapse in December. The third-largest manufacturer of cryptocurrency mining equipment, Ebang International Holdings Inc., is still pushing ahead with an IPO but has yet to obtain approval from Hong Kong regulators.

Ultimately, for Bitmain even to consider filing for an IPO again, the price of bitcoin needs to improve. But despite some small rallies its price remains stagnant. As of 10:30 p.m. EDT, bitcoin was trading at $3,965.78, below a three-month high of $4,105.11 on Feb. 24.

Image: Bitmain