Crypto Mining Giant Bitmain Is About to Become One of the Biggest IPOs Ever

Bitmain Technologies, Ltd., the world’s largest blockchain conglomerate, is going public this year in a deal that could go down as one of the biggest in history.

Bitmain Files for IPO

The China-based crypto mining company is planning to file an initial public offering (IPO) in September worth as much as $18 billion at a market capitalization of up to $50 billion, sources reveal. Once approved, Bitmain’s stock will be listed on the Hong Kong Stock Exchange.

The IPO is higher than the number floated around by Bitmain last month when it revealed plans to raise up to $15 billion via public sale. The higher valuation came after Bitmain closed a $1 billion funding round led by Tencent Music and SoftBank Group – a pair of Chinese companies that are also planning to go public this year.

At $18 billion, Bitmain would be the ninth largest IPO in history, just ahead of Facebook Inc. ($16.01 billion) and Enel ($16.59 billion), an Italian energy distributor.

Competition Intensifies

As Hacked reported last month, Bitmain isn’t the only Chinese blockchain powerhouse looking go public. Ebang Communication and Canaan Creative – Bitmain’s largest competitors – have also announced plans to launch IPOs this year. Each company is looking to raise at least $1 billion.

Bitmain remains ahead of the curve thanks to a series of successful funding rounds and a diversified business strategy focused on mining equipment manufacturing, equipment rentals and mining pools. This strategy has allowed Bitmain to profit despite the sharp downturn in cryptocurrency prices. For this reason, the company has remained profitable despite uncertainty facing the rest of the industry.

The company is on track for its most profitable year ever, with 2018 set to nearly double the last two annual hauls. Revenues have also experienced a four-fold increase over the past 12 months, outpacing Silicon Valley powerhouse Nvidia.

Bitmain is already expanding its global footprint with plans to build a $500 million data center in Texas. The investment would bring up to 400 jobs to a region that has been hit hard by de-industrialization.

However, Bitmain’s expansion has not come without controversy. The company has been accused of operating “secret mining pools” using its own ASIC hardware. Although CEO Jihan Wu has outright denied those allegations, a blockchain developer by the name of Hakkane has provided evidence to the contrary.

Controversy notwithstanding, Bitmain’s push to become one of the biggest IPOs ever is a significant milestone for the blockchain industry, which has struggled to gain mainstream acceptance. The massive economy that is borne out of the bitcoin revolution is showing signs of expansion despite underlying volatility in crypto assets themselves.

Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock.

Author:
Chief Editor to Hacked.com and Contributor to CCN.com, Sam Bourgi has spent the past nine years focused on economics, markets and cryptocurrencies. His work has been featured in and cited by some of the world's leading newscasts, including Barron's, CBOE and Forbes. Avid crypto watchers and those with a libertarian persuasion can follow him on twitter at @hsbourgi