Bitmain's 2018 IPO Attempt Valued Between $40B and $50B: What Happened to the Crypto Mining Giant?
Explore the rise and challenges of Bitmain Technologies Ltd., the leading cryptocurrency mining hardware manufacturer that sought a $40-$50 billion valuation in its 2018 IPO attempt and its ongoing impact on the crypto industry.
In September 2018, Bitmain Technologies Ltd., a powerhouse in cryptocurrency mining, filed for an initial public offering (IPO) aiming to become a publicly traded company. Despite closing a pre-IPO funding round with $1 billion—placing the company's valuation at $15 billion post-investment—the IPO on the Hong Kong Stock Exchange (HKEX) did not materialize, with the application expiring in March 2019 without re-filing.
Headquartered in Beijing, Bitmain was valued between $40 billion and $50 billion prior to its IPO attempt, positioning it as one of the largest potential public offerings in the crypto mining sector.
Key Insights
- Bitmain's 2018 IPO filing was ultimately unsuccessful, though the company confidentially filed with the U.S. SEC in late 2019.
- As a dominant force in mining equipment manufacturing, Bitmain controls approximately 80% of the bitcoin mining hardware market.
- Founded in 2013 by Jihan Wu and Micree Zhan, the company raised around $450 million before its IPO attempt and was valued at $12 billion in private funding rounds.
Although Bitmain's IPO did not proceed as planned, reports surfaced that it confidentially submitted an IPO filing to the U.S. Securities and Exchange Commission (SEC) at the end of 2019. However, as of early 2021, Bitmain remains a private entity.
In contrast, Canaan Creative, another Chinese bitcoin mining hardware manufacturer, successfully went public on Nasdaq in November 2019, marking a significant milestone for cryptocurrency companies in the public markets.
Revenue Streams and Market Dominance
Bitmain's profitability has been substantial, with Coindesk reporting $2.3 billion in profits spanning 2016 through the first quarter of 2018, including a remarkable $1.1 billion in 2017 alone during the cryptocurrency market surge. Bernstein Research estimates Bitmain's annual profits could reach up to $3 billion.
As a vertically integrated company, Bitmain designs and manufactures its own ASIC chips used in mining rigs sold to customers and deployed in its own mining farms. Its ASIC chips are industry-leading, widely regarded as the standard for efficient cryptocurrency mining.
Additionally, Bitmain operates two of the largest bitcoin mining pools globally—BTC.com and Antpool—accounting for approximately 42% to 51% of bitcoin’s total mining capacity.
Future Outlook and Strategic Diversification
Bitmain's revenue closely correlates with cryptocurrency market trends; price surges boost demand for mining equipment and profitability, while downturns reduce both. To mitigate this volatility, Bitmain expanded into artificial intelligence (AI) technology in 2018, developing the Sophon BM1680 chip to accelerate machine learning processes. Founder Jihan Wu projected that AI chips could contribute up to 40% of Bitmain’s revenue within five years.
Industry experts predict ASIC technology will underpin future large-scale distributed computing systems, positioning companies like Bitmain at the forefront of next-generation computing innovations.
Bitmain has expressed ambitions to compete directly with established U.S. and Chinese semiconductor leaders. According to their investor prospectus, the company rapidly captured 8% of China's domestic chip design market within five years, a feat that took Huawei HiSilicon 14 years to reach 17%.
Recognized by Coindesk in 2020 as one of the top 50 most innovative blockchain projects, Bitmain continues to be a central figure in the evolving cryptocurrency ecosystem.
Disclaimer: Investing in cryptocurrencies and initial coin offerings (ICOs) involves high risk and speculation. This article does not constitute investment advice. Readers should consult financial professionals before making investment decisions. The accuracy of information is not guaranteed.
Discover engaging topics and analytical content in Cryptocurrency News as of 23-01-2021. The article titled " Bitmain's 2018 IPO Attempt Valued Between $40B and $50B: What Happened to the Crypto Mining Giant? " provides new insights and practical guidance in the Cryptocurrency News field. Each topic is meticulously analyzed to deliver actionable information to readers.
The topic " Bitmain's 2018 IPO Attempt Valued Between $40B and $50B: What Happened to the Crypto Mining Giant? " helps you make smarter decisions within the Cryptocurrency News category. All topics on our website are unique and offer valuable content for our audience.