According to Chinese media outlets, insiders claim that ‘Bitmain’, a Chinese mining rig manufacturing company, has currently raised $400 million in their pre-IPO. If these figures are accurate, media reports that this would place the company’s current valuation at the sum of $12 billion. As reported by China Media Network, the leader of this round is Sequoia Capital, a venture capital firm that has remained active and relevant in the developing cryptocurrency. Media outlets claim that the venture capital firm also made huge investment in Binance when the company first began. However, Bitmain is yet to publicly confirm this funding round.
The report released by media outlets further claim that Bitmain has plans to make an application for IPO in Hong Kong during September. The report also mentioned that the company expresses hopes of going public before the year runs out with a market capitalization within the range of $30 billion and $40 billion.
A previous report mentioned that the CEO of the mining rig manufacturing company, Jihan Wu, has already started mulling an IPO in overseas market that have USD-denominated shares to increase the possibility of early investors cashing out as soon as possible.
The company, which was founded as far back as 2013, carries out major manufacturing functions which include designing application-specific integrated circuit (ASIC) chips and manufactures cryptocurrency miners. An estimate highlights that the company controls 80% of the mining rig market.
It is worthy to add that Bitmain isn’t the first mining rig manufacturer to apply for pre-IPO. Record shows that Canaan Creative applied to the Hong Kong stock exchange for an initial public offering in the beginning of this year, and Zhejiang Ebang Communication has reportedly began meeting with advisers on a Hong Kong float. Media outlets suggest that these actions are an indication that IPOs may be the new method deployed by cryptocurrency-related companies to raise funds while also getting familiar with traditional practices.
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