Bitmain, the world’s largest manufacturer of crypto mining hardware, is reportedly aiming to raise $18 billion via an initial public offering (IPO), according Business Insider. Should the mining giant manage to accumulate $18 billion at an estimated market capitalization of around $40-$50 billion, then its IPO could be one of the largest in history.
On July 31, CryptoGlobe reported that Bitmain’s first-quarter of this year saw it earn $1.1 billion, which suggests the Chinese crypto mining company may now be valued at $14 billion, up over 16% from previous estimates.
Moreover, Bitmain’s IPO plans are part of the firm’s efforts to become a dominant manufacturer in hardware for artificial intelligence technology. While earlier reports have suggested Bitmain was going to file for an IPO, the company had not given an exact date for its launch.
Now, the mining conglomerate is expected to begin its IPO in September. China International Capital Corporation, a leading investment management firm, will be underwriting Bitmain’s fundraising plan, and listing on the Hong Kong Stock Exchange is scheduled Q4 2018 or Q1 2019.
Highly Competitive Industry
Notably, other crypto mining companies like Canaan Creative, which developed the world’s first bitcoin mining TV set, are also expected to enter public markets at around the same time as Bitmain.
While there may now be increasing competition for the hardware manufacturing giant due to the rapidly evolving crypto mining industry, Bitmain could surpass Facebook’s 2012 IPO record in which the social media company raised $16 billion.
Bitmain, which was founded by 32-year-old Chinese billionaire Jihan Wu, seems to be aggressively looking to maintain its dominance and control over the specialized crypto mining chip industry.
— BITMAIN [Not giving away ETH] (@BITMAINtech) June 10, 2018
During the first six months of 2018, Bitmain’s revenue reportedly exceeded $2.5 billion, making it one of the most valuable cryptocurrency firms. Moreover, the tech company recently acquired $450 million in funding from IDG Capital, Sequoia Capital, and several other multinational venture capital investors.
Notably, Bitmain’s IPO will take place at a time in which the Softbank Group, a Japanese holding conglomerate, and Tencent Music, a Chinese social media entertainment company, will also be hitting the public markets. The mining hardware giant’s IPO comes after it invested $50 million into Opera’s IPO.
It appears that despite the extended bearish trend cryptocurrencies have been enduring investor interest in the blockchain and digital currency industry is still strong. On August 10, Golden Gates Ventures, a venture capital firm based in Singapore, announced the launch of a $10 million crypto fund called LuneX Ventures. The fund will reportedly be used to invest in early-stage blockchain projects.