by Nuno Menezes
The world’s biggest mining conglomerate Bitmain announced the digital currency mining giant wants to gather $1 billion in funding before launching its IPO according to Chinese media outlet Toutiao. In May 2018, the company was already able to complete its pre-IPO Series B funding of $300 to 400 million headed by Sequoia Capital.
Bitmain Files HKSE Application
The announcement reports the fund will be completed by the end of the month and will account for the company’s increasing valuation which is expected to go as high as $12 billion.
The report acknowledged that Bitmain is about to launch an IPO in Hong Kong. Back in May 2018, Wu Jihan, the Founder of the company, stated that launching an IPO was an option that was not excluded but refused to comment any further. Now, the company is finally going ahead with the IPO.
The company is submitting its application to the Hong Kong Stock Exchange (HKSE) this August. It seems that the company already has everything set for an official launch in late 2018. Although several Chinese media outlets are mentioning Bitmain’s recent listing application, the company didn’t publicly confirm the news.
In this round of capital raising, the leading investors take in U.S. hedge fund Coatue, Sequoia Capital, and Singapore state-run investment fund EDBI. In September 2017 the company was also able to raise $50 million in the Series A funding from Sequoia Capital China and IDG Capital.
Jihan Wu disclosed that in 2017 the company’s revenue reached$2.5 billion, roughly eight times more than its 2016 income. Bitmain’s net profit in 2017 was close to 15 times of that in 2016 and this year’s Q1 2018 report indicates that the company is already close to surpassing the entire year data of 2017 as its gross margin is already high as 60 percent.
Bitmain is currently the largest crypto mining hardware manufacturer in the world. The company’s market share is three to five times higher than Canaan, Bitmain’s most prominent competitor. Given that the all of the company’s mining pools collectively account for nearly 50 percent, many enthusiasts have expressed their concerns with the company’s unstoppable growth.
Bitmain has been leading the digital currency mining industry for a few years now. With this new billion in funding along with the Series B funding of $ 400 million, the Chinese firm’s rule of Bitcoin mining power and its ASIC dominance will likely may continue.
All eyes are now focused on Bitmain as it is gathering a powerful conglomerate and its overall mining power in the Bitcoin network is becoming an imminent threat.