Business & Finance

Bitmain Sets to go Public with an $18 billion IPO

Bitmain, the largest bitcoin mining chips manufacturer, decides to go public and that too by raising IPO of $18 billion worth.

Bitmain is filing an IPO on Hong Kong stock exchange at a market capitalization of $40 to $50 billion. In past many Chinese tech companies have turned themselves in to public companies and Bitmain is all set to contribute in to hot trend. Founded by 32-year-old Jihan Wu, Bitmain aimed to make cryptocurrency the future money of the world. He said:

We will also invest into our vision about the future of a crypto market. We think that it will start to support the real world economy, and to build more than this financial market on the Internet. src: Fortune

Bitmain marked about $1 billion Pre-IPO finance. Its valuation i.e $15 billion is almost double than the valuation many predicted in April. If Bitmain successfully raises $18 billion IPO, then it will be substituting the place of social media giants, Facebook who managed to raise about $17 billion, that was world’s 10th biggest, IPO.

Up till now, Bitmain has seen great progress in collecting huge sums of money from different companies and organizations. In a Series A funding round, $50 million had been raised by Bitmain with the support and help from Sequoia Capital China and IDG Capital. Progressing further in to Series B funding round with the investments coming from Sequoia Capital China, U.S. hedge fund Coatue and EDBI, Bitmain raised about $400 million. The significance of the funds can be seen from the valuation of company after Series A fund round which was $1 billion and after done with the Series B funds, it valued about $12 billion.

In the beginning, the company manufactured ASIC chips to mine bitcoin efficiently. Later after blossoming in mining bitcoin, company expanded its services thus encompassing altcoins such as bitcoin cash, litecoin, ethereum etc. Its dominance can be easily seen from its performance so far. Bitmain has been now dominating in its domain as leading mining machines manufacturer. Bitmain’s machinery is handling 66.6 percent of mining volume.

Bitmain has been enjoying milestones since its origin. It surpassed 17 year old company, Spreadtrum Communications by becoming second largest integrated circuit design maker in China. Now Bitmain is heading toe to toe with Huawei HiSilicon for the throne of world’s largest chip maker. It is accelerating in capturing market in short time span as compared to Huawei HiSilicon. Experts even expect it to outperform companies such as Nvidia and AMD very soon in the chip making business.

Moreover, the mining giants are generating revenue from mining bitcoin as well. Currently mining pools of Bitmain are covering 40 percent of the mining network. Its mining pools,  AntPool and BTC.com are at the moment controlling almost 38 percent of world’s bitcoin mining power. BTC.com is serving about 11200 bitcoin blocks whereas AntPool has about 440,000 machines for mining cryptocurrencies. Company is generating large sums of revenue noticeably $11 billion in 2017 and $10 billion in Q1 of 2018 and with the help of IPO, co-founders’ are looking forward to sum up to almost $30 billion benchmark. Such a strong file has persuaded investors to ponder over the company’s plan of raising an successful IPO.

Bitmain has been involved in number of outside investments as well. Recently, company has invested in tribeOS and continued its investments in blockchain tech to maintain its image. In past it has also bestowed investments to BizKey, DEx.top, Circle, Huawei and black.one. It also played important role for adding ethereum extension on Opera browsers. By doing so, Bitmain has established itself as a digital currency infra structured institution to gain attention and trust of investors.

Apart from chips, Bitmain has also seen the prospects of AI and has began investing in it as well. By the end of 2018, it is planning to launch its AI chips called Sophons. The company even claims to match the power of AI products with the ones produced by Google. With the success of AI chips, company looks forward to generate revenue up to 40 percent of total from it only and rule the future Tech world.

Since its creation, Bitmain is growing and developing at a remarkable pace. Accomplishing one success milestone after another, Bitmain has just been managing all pretty well. With its reputation and image, it has taken a bold step to expand on scales impossible to reach on its own. So,target of $18 billion has been set and striving everything necessary for this milestone is the agenda.

Fatir Malik

Electrical engineer by profession, turned into blockchain developer. Fatir contributes regularly with his insights about latest developments in fintech sector. Contact the editor at editor.opinions@blockpublisher.com

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