Bitmain known for its Crypto Mining Chip to file a Mind Boggling $18 Billion IPO

August 13, 2018

3 min read

Bitmain is planning to file an Initial Public Offering (IPO) as high as $18 billion in the next month, September which will end up creating value for Bitmain at a whopping $50 billion. These details are thanks to documents obtained by Coindesk.

The issue will be underwritten by China International Capital Corporation and will be listed on the Hong Kong Stock Exchange. If the plan goes right, Bitmain’s IPO will be the biggest fundraising activity through an IPO beating Facebook’s almighty $104 billion that took place on May 18th, 2012.

With a pre-IPO financial taking place at a valuation of $15 billion, and strong net profits in 2016, 2017 and the first quarter of 2018, the company is looking very likely to achieve a great IPO.

Reports indicate a $1.2 billion net profit and 50% net margin in 2017. While in 2018, in just the first quarter it brought in $1.1 billion which means according to estimates the full year of 2018 could bring the net profits to $2 to $3 billion.

Bitmain’s businesses include integrated circuit chips for mining cryptocurrencies like Bitcoin and hardware for the artificial intelligence industry. It is a Beijing based company founded by Jihan Wu.

A tweet by a cryptocurrency enthusiast called BitLord highlighted that Bitmain’s IPO is far more important than Bitcoin’s ETF delay.

https://twitter.com/Crypto_Bitlord/status/1027492680320802816

While a post by Reddit user ‘ericreid9’ touched on the fact that Bitcoin Cash could very well benefit from Bitmain’s IPO. The Reddit post gives a passage from the papers retrieved from Coindesk about Bitmain’s adoption of Bitcoin Cash as an ecosystem, and it’s investments into Bitcoin Cash project’s such as tribeOS.

While the Bitcoin Cash (BCH) community is dancing in the limelight, the Bitcoin (BTC) supporters are proving that the decision by Bitmain choosing Bitcoin Cash to Bitcoin was a very bad idea.

Reddit user ‘AutomaticMarionette’ replied in the same Reddit post by ‘ericreid9’ about the consequences Bitmain has faced on the decision of selling all of its Bitcoins. The reply stated-

Bitmain has already sold almost all of its BTC, but in the IPO documents, it claims to hold 11% of all outstanding BCH. Needless to say they lost almost half a billion USD on that decision”