Crypto Giant Bitmain Opens its Books to the Public

The virtual currency mining company launched by billionaires Jihan Wu and Micree Zhan confirmed bringing the IPO to Hong Kong Exchange.

Bitmain Technologies, the world’s largest crypto company opens its books for an IPO. As a result, it releases its first public financial statements in Hong Kong regulatory filing on Wednesday putting an end to months of speculation. This IPO comes amid the tension in the crypto ecosystem and the selloff.

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Highlights of Bitmain Technology Limited

  • As compared to the previous year(Jan 2018 – June 2018), the profits rose nine-fold and are equivalent to $742 million in 2018.
  • Return on equity adjusted to 58.9 percent.
  • The company has adopted-dual share structure.
  • Bitmain has $886.9 million (at cost) crypto-assets at the end of June.
  • Like profits, revenue grew 10 fold, to $2.8 billion in the same period.
  • In 2017, 85 percent of the crypto-mining rig in the market was Bitmain’s share as per Bernstein research.

Test of Faith

The IPO may be a response to the downward spiral decline in the virtual currency market. Also due to the Chinese regulatory authorities clamping down on cryptocurrencies and/or ICOsThe company is yet to disclose the target valuation and declines to answer.

The IPO comes as a test of investors’ faith in the crypto/digital currency market. And whether the investors think cryptocurrency is a bubble or a lasting innovation. The disclosures for IPO will put the skeptics’ many speculations about the company.  They might be under-regulated among others will come to a halt.

You can watch out the video to get the details about an IPO:

More Information

Bitmain’s rivals, Canaan Inc and Ebang are also listing for  IPOs. Canaan Inc controls, 10 percent of the mining rig market, while Ebang is a smaller competitor as compared to the other two.

The Bitmain IPO expects to be the third largest IPO, Xiaomi Corp’s 1810. HK IPO of $5.4 billion is the first and Meituan Dianping, an online food delivery-to-ticketing services platform, which raised $4.2 billion. Hong Kong’s Hang Seng Index has dropped 16 percent since the start of 2018 and is the biggest global declines.

You can also check out some relevant articles:

  1. Bitmain Technologies Ltd. Launches Crypto Mining Facility in Texas
  2. Bitmain Owned Antpool Sponsoring Houston Rockets

Have the founders lost faith in the crypto market due to recent selloff? What do you guys think? Let’s discuss!

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Image Courtesy- Vietstock, ODT

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Qadir AK

Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.

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