ASIC Mining Chip Maker Bitmain Now Valued at $12 Billion
Bitmain, which designs application-specific integrated circuit (ASIC) chips and manufacturers cryptocurrency miners, has reportedly closed a Series B financing round that raised somewhere between $300 million and $400 million, valuing the company at $12 billion.
According to a report by Chinese news outlet Caixin on Friday, investors in the new round include Sequoia Capital China, Singapore government-backed investment group EDBI, and Coatue Management, a technology-focused hedge fund based out of the United States.
This corroborates a previous report by China Money Network that cited insiders familiar with the matter.
Bitmain’s influence in the cryptocurrency space is notable. We reported last week that the company is rapidly approaching a 51% controlling share of bitcoin’s global mining hashrate.
According to data analyzing Bitcoin’s latest blocks by mining pool, Bitmain now accounts for more than 42% of the total Bitcoin hashrate. This is largely driven by two major Bitmain-owned mining pools, BTC.com and Antpool, which account for 25.5% and 16.5%, respectively.
While it’s unlikely that Bitmain would attempt any sort of attack, the relative centralization of hash rate is of concern to the Bitcoin community as the risk will always linger.
Bitmain plans to apply for an initial public offering in Hong Kong in September and expects to go public with market capitalization between US$30 billion to US$40 billion by the end of this year.
Bitmain has not confirmed or commented on the latest fundraising round.