Bitcoin mining firm Bitmain has just submitted its initial public offering (IPO) with the Stock Exchange in Hong Kong (HKEX). Bitmain is based in Beijing, China. So what’s going on with the Bitmain IPO?
Bitmain’s long-awaited IPO is still in its draft form and pending further listing hearings from the HKEX. The announcement of Bitmain’s public offering isn’t without controversy though.
Bitmain has been weighing an $18 billion IPO, one of the largest in history. Bitmain is one of the world’s most valuable cryptocurrency companies. Back in July, the crypto mining firm closed a $1 billion pre-IPO financing round. The financing round was funded by China International Capital Corporation.
It remains unknown at this time how much the firm will be valued at down the road.
As of June 30th, Bitcoin reported an $886.9 million balance of cryptocurrencies. The firm mined for Bitcoin (BTC), Bitcoin Cash (BCH), Ether (ETH), Litecoin (LTC), and DASH. The company factored in the net loss of just under $103 million in the last six months when the cryptocurrency market dropped $500 billion in value.
The losses account for more than ten times the net losses of previous years for the company. Will an IPO help make up these losses?
Hardware Sales and Real Estate Kept Company Afloat
The cryptocurrency market took a nosedive in January and has yet to come even close to recovering. Most new investors have lost interest and have shifted gears towards cannabis companies.
Bitmain kept afloat from its mining hardware sales, which brought in $2.6 billion in revenue the first six months of 2018. In all of 2017, the mining firm made $2.26 billion in profits from its ASIC miner hardware.
The Beijing-based company also scooped up really cheap land in China for its mining farms. Bitmain’s filing claims it owns four pieces of land that make up over 120,000 meters of mining space. Bitmain has also leased properties it owns for mining operations and plans to continue to expand its mining operations overseas.
What can we expect from the company if the Bitmain IPO goes through?
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