Crypto mining goliath, Bitmain is filing a whopping $18 billion IPO
Bitmain, one among the big leagues of the cryptocurrency mining world, is filing for an Initial Public Offering (IPO). The IPO would be valued at $18 billion with a market capitalization of $40 to $50 billion. The cryptocurrency mining giant is planning to go public and will be listed on the Hong Kong Stock Exchange by the end of this year or by the beginning of 2019, according to a Coindesk report. This IPO will let the stock market give the company a value in real time. With the earnings from IPO, the combined holdings of the co-founders would amount to $30 billion if they plan to keep 60% of the shares.
The last venture funding of Bitmain before the filing of the IPO was led by Sequoia Capital China. It led a $50 million series A and $400 million series B rounds. This was in collaboration with San Francisco’s IDG Capital, Menlo Park’s Coatue Management, and Singapore’s EDBI and GIC. The series B round valued the company at $12 billion while the series A round was valued at $ 1 billion, accounting for 5% of the shares.
The usage of ASIC chips for the purpose of Bitcoin mining set the crypto mining company a class apart in the crypto world. Since then they have explored the mining of other cryptocurrencies like Bitcoin Cash, litecoin, dash, siacoin and Ethereum. Bitmain has also been minting money from their Bitcoin holdings. Their revenue from Bitcoin holdings for the last three years is estimated to be more than $20 billion.
The cryptocurrency mining giant is poised to become the largest cryptocurrency mining company with the help of the IPO. Bitmain is also passionate about exploring other technologies and already has an in-house artificial intelligence arm which reportedly earns 40% of the revenues.
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