One of the largest crypto giants, Bitmain Technologies Ltd is going public in China this September with the record-breaking IPO of $18 billion.
As per the documents obtained by CoinDesk, Bitmain has decided to bring its stock to public costing $18 billion with a market capitalization of $40 – $50 billion. China International Capital Corporation will be taking the things and will be listed on the stock exchange market of Hong Kong in Q4 2018 or Q1 2019. It will be available for the public for bidding along with the competitors like Ebang Communication and Canaan Creative.
Bitmain which is said to be the most valuable company as compared to other cryptocurrency companies, last month on 23rd July closed a$1 billion pre-IPO financing round with an evaluation of $15 billion. This valuation comes around 2 times of the valuation of $8 billion which was achieved by Coinbase.
Facebook, the leader of social media earlier holds the position of the largest public offerings which is now displaced by a possible $18 billion IPO sticker price position. Now, for the number one and number two IPO’s of all time, it is expected that Alibaba and Spotify will be topped by SoftBank Group and Tencent Music respectively.
China National Gold Group, Softbank Group, Tencent Holdings Ltd and an unnamed sovereign wealth fund were the big names that participated in the pre-IPO round and managed to raise $15 billion in assets. With the deadline of July 18th, a minimum commitment of $5 million was made which were then signed over to the offshore Cayman Islands investment holding group ‘Bitmain Technologies Holding Company’. Lei Jun who is the founder of consumer electronics company Xiaomi Inc and Chinese Technology billionaire is said to have a direct connection with Bitmain.
Until now the projected share price and the volume of stocks to be available has not been revealed. However, the investment bank which participated during the pre-IPO phase is expecting the profit-earnings ratio (P/E) that would be available within the first publicly traded year as 20.
Year wise if we check and calculate the earnings report one will find Bitmain as among those organizations that have continuously scaled upwards in terms of profits. With each passing year, the profit rate has increased. As per financial analyst’s reports, Bitmain in total profited about $2.3 billion in the year 2016, 2017 and in quarter first of 2018. The revenue for the fiscal year 2017 was around $2.5 billion and for the first quarter of 2018, it was $2 billion. Analyzing the previous records, Bitmain is now forecasting a profit of $2 billion by the end of 2018.
If we look into the past, 5 years back, Micree Zhan was approached by Jihan Wu to mine Bitcoin more efficiently with the help of application specific integrated circuit (ASIC) chips. Since Bitmain implemented the technology now it has become a giant player in the market and expanded its operations to various alternative currencies such as Bitcoin cash, Litecoin, Ethereum, Siacoin, and Dash.