$3 Billion IPO For Bitmain, World’s Biggest Cryptocurrency Miner

Aug 16, 2018 at 06:40 Update Date :Feb 27, 2019 at 07:46 UTC

The world’s biggest producer of cryptocurrency mining chips, Bitmain Technologies Ltd, is planning to the raise $3 billion through IPO in Hong Kong.

According to the people with knowledge of the matter, the company is planning to file an application for listing with the Hong Kong stock exchange by September. In past few weeks, Bitmain closed a private funding round of $15 billion, according to one of the people who ask not to be identified owing to the fact that the information is private.

The success of the IPO would act as a litmus test of the appetite of investors for cryptocurrency companies after digital currencies like Bitcoin have slumped by more than 70% since the start of January.

If the IPO lists successfully, it would mark a milestone in the crypto sphere which is continuously trying to establish itself in the mainstream of finance industry.

The Beijing based company is estimated to dominate the crypto mining gear market with a share of 80%.

Jihan Wu, the 32-year old, who co-founded the company in 2013 has already stated that he wants Bitmain to branch out and venture into other technological areas. An IPO may provide the company with surplus funds and a public presence helping it to look into other technologies enterprises like artificial intelligence.

Known for designing tailor-made chips or ASICs, the chips are considered good for solving complex math problems, conduct virtual transactions, and earn crypto rewards. The chips are also considered one of the best for heavy workloads usually required in some types of artificial intelligence such as machine learning.

In a recent interview, Jihan stated that the company recorded a revenue of $2.5 billion during last year and he was open to listing in Hong Kong or any other overseas market with US dollar-denominated shares as it would give an opportunity to early investors like Sequoia Capital to cash out from the offering.

Apart from selling mining equipment, Bitmain operates world’s biggest mining collectives in which members aggregate their processing capacity and divide the rewards.

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