Bitmain, the world’s most power-efficient cryptocurrency miner is believed to be secretly laying the ground for a record-setting offering as it goes public. For a long time now, Bitmain has been the world’s dominant producer of cryptocurrency mining chips (ASICs). The company has also been one of the largest Bitcoin mining pool thanks to its impressive mining chips. At the helm of all this success is a 32-year-old self-made billionaire, Jihan Wu. Wu, the co-founder of Bitmain has kept his personal wealth and much of his company’s operations a secret. It’s been five years now and yet there is still very little information about the company in the public domain and the way it operates. However, Wu’s intentions to go public might just unveil everything there is to know about the Beijing-based company.
Bitmain was founded in 2013 by Jihan Wu and Micree Zhan. This was right after Bitcoin was put on the map and mining companies were beginning to grow. The company’s ASIC design was quickly favored for its capability of mining different coins like Bitcoin, Litecoin, Ethereum and Dash and the company quickly took the lead. During the Bitcoin tumble in 2013, the company managed to hold on with most of its competitors closing shop. Through its maintained quality and popularity the company has maintained the lead and remains the most successful producer of ASICs so far.
Filing For An IPO
In an interview with Bloomberg, Wu revealed that he estimates Bitmain to be worth approximately USD $8.8 billion, contrary to his previous USD $12 billion valuation. This number helps pinpoint how much the company could raise if it was to file for an IPO. Canaan Creative, whose devices account for roughly 15% of the ASIC market, recently filed for a Hong Kong IPO that is expected to raise USD $1 billion. With Bitmain accounting for 80% of ASICs and raking in 12 times as much revenue as Canaan in 2017, its IPO would quite obviously be of much bigger proportions. The company’s impressive record would mean investors would have to pay a premium cost for its shares.
Canaan, one of Bitmain’s major competitors, filing for a Hong Kong IPO means Bitmain might just be inclined to do the same. It could boost Bitmain’s efforts as they venture into new avenues such as artificial intelligence, a venture that governments could show support for. When asked, Wu said that although he had no immediate plans, he would be open to a listing in Hong Kong or in an overseas market with US dollar-denominated shares.
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