Bitcoin mining giant Bitmain Technologies is undeterred by the recent drop in prices for the cryptocurrency, unveiling plans to raise as much as USD$1 billion via private funding followed by an initial public offering.
The Financial Times reports that Bitmain Technologies is also planning an initial public offering, with aspirations to be worth as much as USD$30 – 40 billion within several years time.
An investors presentation from Bitmain Technologies indicates that the company is currently valued at around $14 billion, with revenues of $2.5 billion in 2017 and net profits almost half that amount. Revenues in the first quarter of 2018 alone surged to $1.86 billion.
Bitmain Technologies is China’s largest bitcoin mining company, with over 90% of earnings derived from the sale of mining computers that solve the complex problems needed to validate transactions.
Bitmain’s own cryptocurrency holdings were worth $1.2 billion as of the end of March. Key investors in the company include Sequoia and IDG Capital.
The company is not the only bitcoin mining giant harbouring aspirations to list in the greater China region, with Canaan Creative filing for a Hong Kong listing in May.
Canaan is the second largest bitcoin mining company, claiming to have sold 19.5% of all bitcoin mining equipment in total computing power terms.
The grand ambitions of Chinese bitcoin miners would appear at odds with current market trends, with a recent drop in prices for the cryptocurrency, accompanied by a plunge in prices for mining computers.
Shenzhen retailers reports that kits selling for around 30,000 – 40,000 yuan at the end of 2017 have since been marked down to just a tenth of the price.