Bitcoin Mining Company Bitmain earned more than $1 billion in profit in the first quarter of this year and is planning an IPO of $14 billion.
Bitmain, the world's largest cryptocurrency mining company, confirmed its first-quarter profit despite the overall downturn in the crypto market. According to the report, the Chinese mining and pooling company earned a net profit of US$1.1 billion in the first quarter of this year alone.
The figures showed that Bitmain is almost on par with chip giant Nvidia, which reported a net profit of US$1.2 billion in the first quarter and has a market capitalization of US$150 billion.
Perhaps the most interesting news is that Bitmain is moving forward with plans for an IPO. Bitmain plans to conduct an initial public offering in Hong Kong or an overseas market with shares denominated in US dollars, according to Fortune.com. The company plans to file in August and complete the IPO before the end of this year.
The IPO will give early Bitmain investors, including Sequoia Capital and IDG Capital, an opportunity to cash out.
During 2017, Bitmain is estimated to have generated approximately $4 billion in profits. Therefore, its value is now estimated at approximately $14 billion.
Bitmain, led by Jihan Wu, has become the world's largest mining hardware company since its inception in 2013. In addition to selling rigs, Bitmain reportedly controls about 80% of the crypto miner market and operates several of the largest mining pools. Among them are AntPool, BTC.com Antminer, and Hashnest. The Beijing-based company has offices in Shenzhen, Shanghai, Chengdu, Hong Kong and Fuzhou, as well as international offices in the US, Israel, the Netherlands and Switzerland.
Today, Bitmain dominates the development of crypto hardware and controls a significant part of the Bitcoin hashrate. An IPO would strengthen the company's position at the top of the rankings.
However, Bitmain is in no hurry to share its financial successes and data on digital assets. In the event of an IPO, the financial information of the industry heavyweight will be disclosed, and its value will be determined by the stock market. Bitmain is currently reviewing the need for additional financial disclosure in connection with the IPO.
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