Crypto unicorn and the largest maker of cryptocurrency mining chip, Bitmain is reportedly planning to file for an IPO potentially as high as $18 billion this September, valuing the firm at $40-$50 billion, according to documents obtained by Coindesk.
According to the documents, the issue will be underwritten by China International Capital Corporation and listed on the Hong Kong Stock Exchange around Q4,2018 or Q1,2019. If all goes according to the plan, this will be the biggest fundraising activity through IPO market in the world displacing social media giant, Facebook from the list.
Bitmain is turning out to be a most valuable cryptocurrency firm and has closed a $1 billion pre-IPO financing round at a valuation of $15 billion, twice the valuation of Coinbase. Financial numbers are also supporting such high valuation with firm accumulating $2.3 billion in Net Profits in 2016, 2017 and Q1, 2018. Revenues in 2017 have been reported at $2.5 billion and $2.5 billion in Q1-2018. The company is targetting a profit of $2-3 billion in the current fiscal and annual revenues of $10 billion.
Bitmain Slashes Holding in Bitcoin, Buys Bitcoin Cash
In a pre-IPO document of Bitmain, it can be seen that the firm had sold its large part of Bitcoin holdings and purchased large amounts of Bitcoin Cash. According to a tweet by Samson Mow, in which he posted a chart showing the details of the holdings.
According to the Bitmain pre-IPO investor deck, they sold most of their #Bitcoin for #Bcash. At $900/BCH, they've bled half a billion in the last 3 months. If Bitcoin Core devs didn't disclose the Bcash vulnerability, it could've wiped a billion dollars off their balance sheets. pic.twitter.com/9BMywdvvby
— Samson Mow (@Excellion) August 11, 2018
According to the chart, in December 2016, Bitmain held 71,560 Bitcoin and zero Bitcoin Cash but the in March 2018, it can be seen that the firm now holds 22,082 Bitcoin and 1.02 million Bitcoin Cash. Bitmain has time-to-time has shown business interest in Bitcoin Cash and its associated developers have been discussing a proposal called ‘Wormhole’, a layer for building smart contract using Bitcoin Cash blockchain. Following this, Bitmain announced a $3 million investment in a Bitcoin Cash-powered digital advertising company.
In April 2018, AntPool, the Bitmain controlled mining group which also controls 14.4 per cent of all Bitcoin mining activities announced it will be destroying 12 per cent of all Bitcoin Cash mining rewards.
The reason to destroy mining rewards are done for the purpose of raising the value of remaining holdings and as expected, the value of Bitcoin Cash rose by approximately 50 per cent after the announcement. With the data presented in the chart, the total holdings of Bitcoin Cash by Bitmain amounts to 5 per cent of the total circulation (worldwide circulation of 17,288,638 BCH).
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