Bitmain, the Beijing-based cryptocurrency mining behemoth, has officially filed to go public on the Hong Kong Stock Exchange (HKEX). Published on Wednesday, Bitmain’s long-awaited IPO announcement follows various news reports that the mining giant has been mulling a Hong Kong listing for a multi-billion dollar public fundraising. The IPO has now placed Bitmain in direct competition with Hong-Kong based Canaan Inc., which also filed for a $1 billion USD IPO in Hong Kong as well as with Ebang International Holdings.
As the process of transitioning from a private to a public company is already underway and currently pending further listing hearings from the HKEX, Bitmain has released their financial books for the first time, giving investors the possibility to assess the company’s financial status. The files disclose that Bitmain saw a profit of $742 million USD come in for the first two quarters of 2018. Seemingly, most of the revenue has come in from the sales of cryptocurrency mining hardware.
The mining company has expressed their objectives regarding the funds raised in the IPO, stating that the money will be eventually put into researching and development in order to increase its production output. As it seems, it is not clear yet which financial target Bitmain hopes to hit once the IPO is finalized. According to sources, the company is allegedly seeking to raise as much as $3 billion USD to $18 billion USD.
Additionally, the IPO could potentially provide Bitmain with opportunities that will allow the company to branch out into various industries. Nothing is yet clear however, as with the IPO finalizing anything could happen.
Nevertheless, CEO and co-founder of Bitmain Jihan Wu has alluded in an interview with Bloomberg to a possible branching out, citing that the next phase of the company would involve “advancing our technology beyond what we’ve already achieved”. Wu has offered that this might include artificial intelligence (AI), which is a typically non-cryptocurrency related industry. This certainly doesn’t necessarily confirm his plans, it merely just suggests the possibility of trying new things.