Beijing-based cryptocurrency mining firm Bitmain has reportedly filled an application for an IPO on the Hong Kong Stock Exchange (HKEX). Rumors of the Bitmain IPO have been slowly surfacing for quite some time. There has been speculation of the mining firm mulling to raise funds through an IPO.
The company had faced a number of controversies prior to its filing for the IPO. The controversies circulated around other large-scale firms denying of having a role or part in the fundraising quest through the Bitmain IPO. These controversies created some doubt on the company’s reputation, which translated into possibly affecting how much the company may be able to raise through the filling.
The IPO filing, however, is currently in its draft form and HKEX is yet to list the IPO and provide necessary details. The valuation of the company at the launch of the IPO cannot be gauged at this point of time until the HKEX comments on its listing.
The IPO application was recently circulated online with information related to shares redacted. No one knows exactly how many shares will be offered to the public for purchase and at what price. The filling has given a peep into Bitmain’s financials as well as on the company’s working structure.
As per the filling, the mining firm was able to earn revenue of $2,517,719,000 in 2017, which was more than that of $277,612,000 that were made in 2016. As of 30th June 2018, Bitmain reportedly made $2,845,467,000 in revenue. The company’s profit was even more than the last year. It reported a profit of $1,030,151,000 in the first half of 2018, which was up from $151,351,000 in the same period of 2016. In 2017, the company reported an annual profit of $1,212,750,000.
According to reports by CoinDesk, Bitmain’s profits rose significantly year-over-year. Profits raised from $100 million in 2016 to $1.1 billion in 2017 and $1.1 billion in the Q1 2018. After adjustments, the company’s profit was $113.5 million in 2016, $952.5 million in 2017 and $952.1 million in Q2 2018.
According to a separate report by CoinDesk, the company has allegedly raised three funding rounds from investors across Asia and the US. However, the company has not disclosed the number of investors in any of its fundraising rounds.
In Series A funding round, the company raised $50 million which was contributed by SCC Venture $18.75 million, Richway Investment $12.5 million, Sinovation $12.5 million, Blue Lighthouse $4.25 million and IDG China $1.2 million as well as Beijing Integrated Circuit $0.80 million.
The company raised $292.7 million in Series B round of funding which closed on 19th of July 2018. The round saw contribution from SC GGFII $49.98 million, China Taijia $29.99 million, Blue Lighthouse $25.99 million, Coatue $17.49 million, EDBI $13.99 million, Rising Delight Enterprises $7.99 million, FreeS Bit SPV Fund $7.99 million, Richway Investment $4.99 million and more. The company also held a pre-IPO funding round in which it collected $422.05 million. The round saw investment from some of its existing investors and new investors.
As soon the Bitmain stock goes public, we will include it in our large list of publicly traded blockchain stocks and keep a close eye on its activity.