Bitmain files for an initial public offering on HKEX
Various news reports have pointed to Bitmain’s interest in a Hong Kong listing and its plan for a multi-billion dollar public fundraising. However, the process has not been without its share of controversies, with major firms like Tencent Holdings and SoftBank Group rejecting a pre-IPO funding phase, a development that led to doubts on Bitmain’s claims.
Since the application is in draft form and is pending further listings hearings from HKEX, it doesn’t seem too great a news because Bitmain does not know at what level the firm will be valued.
In the posted application, a lot of inner details remain censored which included the number of shares to be offered and the timetable for the IPO.
The prospectus, however, does give detail on Bitmain’s financial standing as well as how it is structured.
According to the application, the firm made a total of $2,517,719,000 in revenue in the year 2017, showing a staggering increase from $277,612,000 revenue it made in the year 2016. In just 6 months of time this year, the firm has Bitmain has made $2,845,467,000 in revenue.
Its gross profit for 2017 was $1,212,750,000 which increased from $151,351,000 in 2016. For the first half of this year, Bitmain reported a gross profit of $1,030,151,000.
Before taxes were added upon them, they brought home $137,750,000 in 2016, $897,376,000 in 2017, and until June 30 of 2018 they brought $907,792,000.
As of June 30, 2018, the prospectus shows a balance of cryptocurrencies denominated in bitcoin, bitcoin cash, ether, litecoin, and dash of $886.9 million. 28 percent of total assets came from the other cryptocurrencies, stated the document. Until December 30, 2017 balance was $872.6 million which added to 30 percent of the total assets. It was quite low in 2016 where the balance couldn’t climb $56.3 million.
Bitmain has also stated some of their key strategies which include research and development, advancing presence in the blockchain industry, continuing to invest in artificial intelligence and to promote the commercial application of the mining agent's technologies and solutions related to artificial intelligence.
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