Mining Firm Bitmain Officially Files IPO On Hong Kong Stock Exchange

Bitmain, the largest cryptocurrency company in the world, has filed a draft IPO application as it aims to begin trading publicly on the Hong Kong Stock Exchange (HKEX), according to official application document published September 26.

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Bitmain, the largest cryptocurrency company in the world, has filed a draft IPO application as it aims to begin trading publicly on the Hong Kong Stock Exchange (HKEX), according to official application document published September 26.

Controversial IPO ready to kick off

The IPO process for Bitmain has been filled with controversies at multiple stages, most recently seeing some companies publicly deny being involved in their pre-IPO funding phase.

The application was submitted in draft form as requested by the HKEX, and thus some details have not yet been finalized. Bitmain warns that the draft was published in the interest of full disclosure and public knowledge only and that all information is subject to change.

In its application, Bitmain stated that it is the second largest fabless IC design company in China and amongst the top ten in the world in terms of revenue.

It further stressed that it is one of the few companies that manufactures mining hardware for the production of the cryptocurrency Bitcoin, as well as altcoins such as Ethereum, Litecoin, and Dash.

The firm didn’t reveal how much it is looking to raise from the IPO but sources close to the firm have revealed that the company share sale could reach $3 billion.

In addition to that, Bitmain didn’t disclose the exact number of shares that would be offered to the public for sale.

Bitmain’s IPO plans were first revealed in June when CEO Jihan Wu revealed that Bitmain is considering listing on a stock market that has a U.S. dollar-denominated shares.

Bitmain opens its books for the first time

The controversial and secretive company opened its books for the first time for its upcoming IPO.

Mining Firm Bitmain Officially Files IPO On Hong Kong Stock Exchange

In its filing, the mining giant revealed that it generated $2,517,719,000, almost ten times the previous year’s $277,612,000

In the first half of 2018, Bitmain revealed that it had accrued $2,845,467,000 in revenue, eclipsing the amount raised in 2017 within just six months.

Looking further into the figures, Bitmain stated that $1,212,750,000 from its revenue last year was the gross profit for the company.

Its profit for the first half of 2018 stood at $1,030,151,000. Of the $277,612,000 generated in 2016, $151,351,000 was recorded as profit.

Profits before taxes for the year 2016 stood at $137,750,000, while in 2017 the figure was $897,376,000 and $907,792,000 for the first half of 2018.

The company, which was launched in 2013, is currently one of the biggest cryptocurrency companies in the world and has been performing well despite the current bear market, thanks to a massive rise in the sales of its mining hardware.

By the end of the first half of the year, the company revealed that it held $886.9 million of cryptocurrency assets.

Bitmain revealed that the company placed a large order for new hardware with its production partners, expecting strong cryptocurrency market growth this year, however, sales have slowed down for the company.

In addition to that, Bitmain now faces tough competition from Canaan Inc. and Ebang International Holdings Inc. who Sanford C. Bernstein & Co. analysts say could pose a real threat to Bitmain’s position as the leading cryptocurrency mining hardware manufacturer.

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