Bitfury Could Launch Europe’s First Major Crypto IPO With Potential $5 Billion Valuation

Bitfury Could Launch Europe’s First Major Crypto IPO With Potential $5 Billion Valuation

The largest full-service blockchain technology company in the world, Bitfury, is mulling strategic options which include an IPO. The IPO if launched will be Europe’s first major listing as reported by people familiar with the news, and Bitfury would join the ranks of many other publicly traded blockchain stocks.

People familiar with the matter speaking on the news have requested confidentiality, but shared that the company is in talks with international financial institutions as the company plans to launch its IPO in Amsterdam, London or Hong Kong by the beginning of 2019.

There are a number of options that the company is currently considering which include gathering debt financing and selling minority stakes. However, the company has not revealed any final plan or its final call. It is believed that the company may seek a valuation of between $3 billion to $5 billion in case the company decides to go public in the coming two years. The figures, however, are subject to market risk and may change accordingly. A representative of the company, however, declined to add any comments when approached.

People familiar with the matter said that financial institutions are not supportive of IPOs as there are growing concerns on the future of cryptocurrencies and lack of regulations.

Nevertheless, many companies are considering investing in the cryptocurrency. Fidelity was in news this month for launching a new business to manage digital assets for hedge funds, trading firms and family offices. Reports are also there of two companies Goldman Sachs Group Inc and a Mike Novogratz who founded the fund of investing in BitGo Holdings Inc, a custodian of cryptocurrency.

The revenue of Bitfury is almost a fraction of the sales, reported Beijing-based Bitmain Technologies Ltd – a virtual currency mining company which allegedly filed for an IPO in Hong Kong in September. Before the IPO filing, the supporter of the company said that the company has the potential to raise as much as $3 billion in the IPO. The operations of the virtual currency firms are always at risk, as these companies operate in such volatile markets.

Bitfury considers itself as a full-service blockchain technology. They were founded in 2011 and offer products such as crypto-mining hardware and software. In March, the company reported revenue of nearly $450 million for 12 months. The Chief Executive Officer, Valery Vavilov, together with co-founder Valery Nebesny enjoy a majority of stake in Bitfury, according to a statement by Vavilov.

Bitfury is primarily a tech-hardware company. It has gathered much attention in the past few months for its capabilities in keeping high-speed machines cool by submerging the computers at a plant with non-conductive liquid substance in Georgia.

The company, ever since its entry into the Bitcoin mining industry has ventured into various other business dealing in blockchain technology. The company first made a name for itself by producing computer chips for cryptocurrency mining machines, along with corresponding software, and has a huge client base which includes large institutions, companies and governmental bodies.

According to a recent study conducted by Bloomberg, companies dealing in crypto have raised $186 billion from IPOs across the world in 2018. Out of this huge amount raised by firms, 2.9 percent on average is raised by European firms as compared with 4.4 percent in Asia and 9.1 percent in North America.


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