Bitmain Raises USD 400 Million in Pre-IPO - Report
Chinese mining rig manufacturing giant Bitmain has reportedly already raised USD 400 million in their pre-IPO, which would have brought the company’s valuation at USD 12 billion, according to Chinese local media citing insiders.
The report, according to regional media outlet China Money Network, names Sequoia Capital the leader of this round. Sequoia Capital is a venture capital firm that has been quite active in the nascent cryptocurrency space - reportedly, they had invested in Binance in their early days as well. Bitmain has not yet confirmed the funding round publicly.
The report also said that Bitmain plans to apply for an initial public offering in Hong Kong in September and expects to go public with market capitalization between USD 30 billion to USD 40 billion by the end of this year.
Bitmain, which was founded in 2013, designs application-specific integrated circuit (ASIC) chips and manufacturers cryptocurrency miners. It is estimated that the company currently controls 80% of this market.
As previously reported , Bitmain CEO Jihan Wu has already been mulling an IPO in Hong Kong or in an overseas market with USD-denominated shares, as this would give early investors an opportunity to cash out.
Bitmain is not the first mining rig manufacturer to take this step. Earlier this year, Canaan Creative has applied to the Hong Kong stock exchange for an initial public offering, while Zhejiang Ebang Communication has started working with advisers on a Hong Kong float. IPOs seem to be the new method for cryptocurrency-related companies to raise funds while simultaneously bringing the young industry closer to more traditional measures.