Bitmain Has Finally Applied for its Hong Kong IPO
Bitmain has officially made an application for its initial public offering (IPO) on the Hong Kong Stock Exchange (HKSE), according to a recently published document. The news confirms rumors dating from earlier this year.
Subscribe to the Bitsonline YouTube channel for great videos featuring industry insiders & experts
Application Shows Healthy Financials for Bitmain
The IPO application to the HKSE reveals a great deal of information about Bitmain, the world’s largest cryptocurrency mining manufacturer, though it is still subject to revisions and heavily redacted. The sponsor of the application is the China International Capital Corporation (CICC), which was reportedly involved in an unconfirmed $1 billion USD pre-IPO investment round in August.
Bitmain reported rapidly growing revenue over the course of the last year. For the first half of 2018 ending June 30th, its revenues were $2.85 billion. This exceeded the total revenues of 2017, which were $2.52 billion. The 2018 first half figures were also an exponential increase from the first half of 2017, when revenues were $274.5 million.
Net profit for the first half of 2018 was reported as $742 million, which beat the $701 million the firm reported for the entirety of 2017. The sale of mining hardware made up 94 percent of Bitmain’s revenue for the first half of 2018, up from 90 percent in 2017.
The firm also said it had 80,000 customers as of June 30th, 2018, up from 46,00 at the end of 2017, with the bulk of them located in China, Asia, the U.S., and Europe.
Bitmain Moving Ahead Despite Crypto Market Decline
Bloomberg reported in June of this year that Bitmain was considering an IPO, with rival chip makers Canaan and Ebang having already filed IPOs on the HKSE in May and June respectively. Yet, the steep drop in crypto markets over 2018 has caused some uncertainty over how Bitmain and other firms reliant on cryptocurrency mining were faring.
Yet, bad market news hasn’t slowed Bitmain down. Just last week, the firm announced a new 7nm ASIC chip which will appear in next generation Antminers, the firm’s flagship bitcoin mining machine. In the IPO application document, Bitmain also shows itself optimistic about crypto. It lays out its strategy to continue investing in the research and development of ASIC chips for cryptocurrency mining.
However, Bitmain is also hedging its bets by exploring other applications for its chips, particularly artificial intelligence (AI). Like cryptocurrency mining, AI systems can use ASICs, which are chips designed for very narrow computing tasks.
Cryptocurrency Asset Holdings and Patents
Bitmain also reports holding bitcoin, bitcoin cash, ether, litecoin, Dash, and possibly other cryptocurrencies on its books. Some of these holdings come from proprietary mining (mining the firm does on its own behalf), while the rest came from sales paid in cryptocurrencies and rewards generated from their mining pools, like Antpool and BTC.com. In August, Bitmain opened up BTC.com, its biggest pool, to Ethereum and Ethereum Classic mining.
The document also details 50 of the copyrights and patents that Bitmain has registered in China, which range from a “cryptocurrency mining hardware system” to software for various cryptocurrency algorithms like Equihash, Cryptonight, and Dash.
Have your say. Will more large crypto enterprises go the IPO route if Bitmain’s proves fruitful? Let us know in the comments below.
Images via Pixabay