Bitmain, which is actually the largest manufacturer of crypto mining hardware in the world, has the purpose of raising $18 billion by an Initial Public Offering or IPO. If the mining giant succeeds in accumulating $18 billion at an estimated market capitalization of about $40-$50 billion, then its IPO could be one of the largest in the history.
Bitmain aims to become a dominant manufacturer of hardware for AI
On the 31st of July, it has been reported that the first-quarter of 2018 of Bitmain saw it earn $1.1 billion, which suggests that the Chinese crypto mining company may now be valued at $14 billion, which is up to 16% from the estimates from previously.
Furthermore, the IPO plans of Bitmain are part of the efforts of the firm to become a dominant manufacturer of hardware for artificial intelligence technology. While some reports from earlier suggested that Bitmain was going to file for an IPO, the company had still not given an exact date for its launch.
Now, this mining conglomerate is expected to start its IPO this September. One leading investment management firm, named China International Capital Corporation, is going to be underwriting the fundraising plan of Bitmain, and listing on the Hong Kong Stock Exchange is scheduled Q4 2018 or Q1 2019.
Highly competitive industry
What has also been noted was that some other crypto mining companies, such as Canaan Creative, which developed the first Bitcoin mining TV set in the world, are also expected to enter public markets during the same time as Bitmain.
Now, there is also increasing in the competition for the hardware manufacturing giant, because of the rapidly evolving crypto mining industry, but Bitmain could surpass the 2012 IPO record of Facebook, in which the social media company raised about $16 billion.
Bitmain, the largest manufacturer of crypto hardware in the world, was actually founded by the 32-year-old Chinese billionaire Jihan Wu and seems to be aggressively looking to maintain its dominance, as well as its control over the specialized crypto mining chip industry.
Multinational venture capital investors
At the time of the first six months of 2018, the revenue of Bitmain exceeded $2.5 billion, becoming one of the most valuable cryptocurrency firms. Furthermore, the tech company recently acquired $450 million in funding from IDG Capital, Sequoia Capital, as well as several other multinational venture capital investors.
Notably, the IPO plan of Bitmain is going to take place at a time in which the Softbank Group, which is a Japanese holding conglomerate, and Tencent Music, which is a Chinese social media entertainment company, are also going to be hitting the public market. The IPO of the mining hardware giant comes after it invested $50 million into the IPO of Opera.
However, it looks like despite the extended bearish trend cryptocurrencies were enduring investor interest in the blockchain, as well as the digital currency industry, it is still strong. On the 10th of August, Golden Gates Ventures, which a venture capital firm based in Singapore, announced the launch of a $10 million crypto fund which is called LuneX Ventures. The fund is going to be used to invest in early-stage blockchain projects.