Chinese company loses $23 million following secret mining operations

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  • Huatie were forced to sell their subsidiary, Huatie HengAn, for just 10% of its initial valuation, following the losses.
  • Huatie HengAn started as a construction company, but it is suspected that they had moved into crypto mining.

Chinese firm Huatie were forced to sell their subsidiary, Huatie HengAn, for just 10% of its initial valuation, following losses of upto $23 million within a single year. In 2018, Huatie’s end-of-year financial report showed losses of $14 million and by February 2018, that had risen all the way upto $23 million.

Huatie HengAn was initially supposed to be a construction company, but suspicions rose when the company’s annual financial filings showed that they had purchased 36,500 units of hardware from Canaan and Ebang in 2018, which they listed as “servers.” Since both those companies are known for their crypto mining hardware, it is suspected that they secretly pivoted from construction to mining.
 

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