Bitmain Has Reportedly Raised $400 Million in Pre-IPO Funding
As Bitmain prepares to go public later this year, the dominant force in bitcoin mining has reportedly raised $400 million in funding. According to China Money Network, Bitmain has been valued at $12 billion, though they have not yet confirmed their funding round publicly.
The $12 billion estimate comes from matching Bitmain’s internal funds but exceeds that projected by various external analysts, who estimate the firm value lying between $8.8 billion and $10 billion. The report states that Bitmain plans to hold an initial public offering (IPO) within the Hong Kong Stock Exchange during September. Plans to go public are projected to finalize once the market cap reaches $30 billion. If Bitmain’s IPO is successful, the company would contain the most valuable public cryptocurrency firm.
Bitmain currently designs application-specific integrated circuit (ASIC) chips and manufacturers cryptocurrency miners. As of now, the company currently controls 80 percent of the market, although a rising number of upstart competitors, such as GMO Internet, are hoping to bring down their stronghold.
Canaan Creative is currently Bitmain’s largest competitor, with devices accounting for roughly 15 percent of the bitcoin mining market. They have recently filed to hold an IPO in Hong Kong as well, believing they may raise as much as $1 billion in offerings, according to reports from South China Morning Post.
Bitmain has recently started designing ASIC chips for applications that are related to artificial intelligence, with CEO Jihan Wu stating that this field may account for 50% of the company’s revenue within the next five years in an interview with Bloomberg Businessweek.
Bitmain plans to expand further as the firm has recently led a $110 million funding round for US-based cryptocurrency firm Circle, who operates over-the-counter (OTC) trading desks as well as a cryptocurrency exchange, as stated in an interview Wu conducted with Quartz.