ASIC Mining Chip Maker Bitmain Had $1.1 Billion in Profits in Q1
Bitmain, which designs application-specific integrated circuit (ASIC) chips and manufacturers cryptocurrency miners, has reportedly made $1.1 billion in profits in the first quarter of 2018 alone.
According to a recent report by Fortune that cites a term sheet for the company’s upcoming IPO obtained from insiders, Bitmain currently claims a 50% net margin and has conservative estimates of $2 to $3 billion for its full-year profit.
In addition to detailing its quarterly financials, the information obtained by Fortune also revealed that Bitmain is currently conducting another round of fundraising at a $14 billion. This implies a 10 to 11x earnings multiple and a 16.6% increase from the company’s previous valuation of $12 billion for its Series B financing round that raised somewhere between $300 million and $400 million.
Bitmain plans to apply for an IPO in Hong Kong in September and expects a market capitalization of around $30 to $40 billion by the end of this year.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.