Three of the largest cryptocurrency mining equipment manufacturers in the world are planning to raise billions of dollars through initial public offerings (IPOs) in Hong Kong amid declining prices of Bitcoin and other digital currencies, reports Financial Express.

The planned IPOs come amidst a report by U.S. chipmaker Nvidia Corp of a decline in sales to crypto miners to $18 million in the second quarter, as opposed to a projected $100 million in earnings during the period. Nvidia chief financial officer Colette Kress has also painted a bleak picture for the firm's second-half results saying she does not see better revenue contribution from cryptocurrency in the coming months.

“That has raised concerns about the upcoming Hong Kong listings by three Chinese manufacturers of Bitcoin mining equipment, Bitmain, Canaan Inc and Ebang International Holdings,” the report said.

All the three companies develop high-performance computer chips used in mining digital currencies, mostly focused on bitcoin. But falling cryptocurrency prices are expected to impact investors’ confidence in these chip makers, experts said.

“The marked decline in the price of bitcoin since the start of the year is likely to weigh on investors’ interest in these companies,” said chief executive of financial services consultancy Quinlan & Associates Benjamin Quinlan said and added, “The fall in the price of Bitcoin from its peaks has not been matched by an equivalent fall in the numbers of people mining it.”

As of Monday, Bitcoin was trading at $6,754 down more than 60 percent from its $18,690 peak on December 2017.

In addition to falling Bitcoin prices, investors with knowledge of IPOs expressed concern over regulatory uncertainties, as well as the poor performance of Hong Kong offerings this year.

Last week, it was reported Bitmain’s pre-IPO is facing possible risk after one of its primary backers, Temasek, was said to be reconsidering its decision after the Chinese firm misrepresented the list of pre-IPO backers.

Compounding Bitmain’s woes is the independent research by investment management firm Sanford C. Bernstein & Co. suggesting the company might be losing its competitive edge, which could impact its planned IPO.

“The competitiveness of Bitmain’s chips is in question,” the analysts wrote in a report published on Wednesday.

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