Based on documents obtained by BlockPitch, the cryptocurrency mining business is filing for an initial public offering (IPO) potentially as large as $18 billion this September at a market capitalization of $40 to $50 billion. It’ll Be underwritten by China International Capital Corporation and listed on the Hong Kong Stock Exchange in Q4 2018 or Q1 2019 amid a tide of Chinese unicorns hitting the general public markets, including bitcoin mining competitions Canaan Creative and Ebang Communication.
Earlier this week, the mining hardware giant introduced mining routers which would allow people to mine DASH and Siacoin. The company also has been transparent and said that the router-based miners aren’t for professional miners, but it’s for people who have an interest in cryptocurrency mining.
Among the very valuable cryptocurrency businesses, Bitmain closed a $1 billion pre-IPO financing around on July 23 in a $15 billion evaluation, nearly two times cryptocurrency trade Coinbase’s $8 billion valuation, reported in April.
Now, a potential $18 billion IPO sticker price rankings Bitmain to displace social media giant Facebook as one of the greatest public offerings in history. SoftBank Group and Tencent Music are anticipated to top Alibaba and Spotify for its number one and two IPOs of all-time at the Identical financial period.
Tencent Holdings, Ltd., Softbank Group, China National Gold Group and an unnamed sovereign wealth fund handling $15 billion in assets participated in the pre-IPO around . A minimum commitment of $5 million was deadlined by July 18 and signed to Bitmain Technologies Holding Company, the offshore Cayman Islands investment holding group that’s been associated with Chinese technology billionaire Lei Jun, founder of consumer electronics firm Xiaomi, Inc..
Before this latest funding, Sequoia Capital China had headed Bitmain’s $50 million Series A and $400 million Series B rounds with the Support of San Francisco’s IDG Capital, Menlo Park’s Coatue Management, Russia’s DST Global and Singapore’s EDBI and GIC. The Series A round accounted for 5 percent of stocks at a post-mortem valuation of $1 billion and the Series B round valued the firm at $12 billion.
Projected share volume and price are not disclosed, but investment banks near the IPO are calculating the P/E ratio to be 20 within the first publicly traded year.
Financial numbers encouraging this multiple signal that Bitmain gained $2.3 billion in total throughout 2016, 2017 and Q1 2018, with earnings of $2.5 billion in 2017 and $2 billion in Q1 2018. Bitmain is forecasting $2 billion in profit from year’s end.
