- Bitmain, the crypto mining giant, has filed for an IPO
- In the last funding round Bitmain was valued at $12 million
- The listing will occur on the Hong Kong Stock Exchange
- The firm gains near $3 billion of profit every year
The crypto mining giant Bitmain is filing for an IPO with a $40 to $50 billion valuation. The Beijing-based mining firm has plans to raise $18 billion from the public market. It is observed that this IPO will be one of the largest public offerings ever in the world. However, the mining firm has raised $450 million from the investors, and in the last funding round the firm was valued at $12 billion in private markets.
When and where will the listing occur?
It is known that the China International Capital Corporation will underwrite the IPO offering of the mining giant Bitmain. Indeed, the listing of the IPO is expected to occur on the Hong Kong Stock Exchange. It seems as the investors could soon be able to buy the portion of the firm, maybe later this year, or might earlier next year.
How much is the mining firm gaining on an average?
It is observed that in the last three years, Bitmain has surged a profit of more than $2.3 billion. Indeed, last year’s skyrocketing prices of digital assets helped the firm to gain $1.1 billion. However, in the first quarter of 2020, the crypto mining firm has already made much profit. Earlier this year, Bernstein Research claimed that the China-based mining firm is generating profits of approximately $3 billion per year.
Bitmain as a vertically-integrated behemoth
The crypto mining firm Bitmain creates its chips for mining rigs. The firm also sells such chips to end customers, which also helps them as equipment for cryptocurrency mining farms. Indeed, the mining firm is also a dominant player in the mining equipment business. It is observed that the mining firm controls approximately 80% of the market for crypto mining equipment.
Does crypto mining firm Bitmain have any future?
The market of digital currencies has brought a robust influence on the revenue of Bitmain. As observed last year, the increase in the price of cryptos has boosted the revenue of the mining firm because of the high demand for its machines. During last year’s crypto market rally, the firm has also increased the pricing of its mining machines. However, we can conclude that the revenue of Bitmain depends on the price of cryptocurrencies. With the soaring crypto market, the revenue of the mining firm will also increase, whereas, if a slide in prices of cryptos is observed, then it will also affect the mining firm.
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