Bitmain, the dominant cryptocurrency mining leader, is filing for an initial public offering (IPO) potentially for as much as $18 billion this September at a market capitalization of $40 to $50 billion. It will be listed on the Hong Kong Stock Exchange in late in 2018 or early in 2019.
Bitmain closed a $1 billion pre-IPO financing round on July 23 at a $15 billion valuation. This was nearly double the $8 billion valuation for Coinbase.
Sequoia Capital China had led Bitmain’s $50 million Series A and $400 million Series B rounds with the help of San Francisco’s IDG Capital, Menlo Park’s Coatue Management and Singapore’s EDBI and GIC.
Bitmain has over $2 billion in profits and made over $10 billion from bitcoin holdings
Bitmain had profits of
$100 million in 2016
$1 billion in 2017
$2-2.5 billion estimated profits in 2018
In 2017, Bitmain machines accounted for 66.6% of the total mining volume and Bitmain-run cryptocurrency mining pools covered 40% of the total mining network.
The 2018 IPO prospectus indicates, BTC.com, the largest mining pool in the world, counted over 560,000 machines that mined approximately 11,200 out of 36,000 total bitcoin blocks. The second largest mining pool AntPool served more than 440,000 machines for bitcoin and alternative cryptocurrencies.
Bitmain has made $1 billion, $11 billion and $10 billion from its 2016, 2017 and 2018 Q1 from its bitcoin holdings.
Bitmain is a leader in advanced lithography chips
As of December 2017, Bitmain matched Huawei HiSilicon in 16 nanometer chip sales. Taiwan Semiconductor supplied Bitmain with more 10 nanometer chips than for Huawei HiSilicon. Bitmain has a new unreleased 10-nanometer chip and will have new class of 7 nanometer and 12 nanometer chips later this year.
Bitmain plans to shift its business to Artificial Intelligence
Bitmain plans to get 40% of its revenue from Artificial Intelligence by 2023.