Crypto Mining Giant Bitmain Completes Pre-IPO Round, Hits $15B USD Valuationbr>
Chinese crypto mining hardware manufacturer Bitmain is now reportedly valued at $15 billion after closing a $1 billion pre-initial public offering (IPO) funding round.
The pre-IPO, which closed on Saturday, includes investments from Chinese technology conglomerate Tencent and Japan’s Softbank, a tech giant heavily invested in a number of tech ventures globally including its standing as Uber’s largest shareholder.
Founded in 2013, Bitmain is the world’s largest cryptocurrency mining company, headquartered in Beijing. In 2017, Bitmain reportedly produced $1.2 billion in net profit and an approximately 50% net margin. In the first quarter of 2018, the company brought in $1.1 billion in net profit and net profit for the full year is projected somewhere around $2 to $3 billion.
Last month, Bitmain closed a $300-400 million Series B funding round which inched its valuation upward to $12 billion. After closing its latest pre-IPO round, the Chinese crypto mining giant has seen a 16.5% increase in its overall valuation in less than 45 days.
Bitmain is now reportedly planning to launch its IPO on the Hong Kong Stock Exchange this September at an estimated valuation of $30 billion. Bitmain CEO Jihan Wu said that an IPO in the region would be a suitable means for allowing early investors to cash in their funds.
Earlier this week, Bitmain announced its expansion to Texas with its new blockchain data center and cryptocurrency mining facility. The new facilty will be located within a section of the former Alcoa Rockdale Operations site. Bitmain will be investing more than $500 million over an initial period of seven years into the local, county, and statewide economies.