Bitmain, the largest cryptocurrency mining firm, has finally revealed that its quest for a multi-billion dollar IPO will take off from Hong Kong. This was after the firm filed an application proof with the Stock Exchange of Hong Kong Limited.
This becomes the first time Bitmain opens its financial books for public scrutiny. According to the filed documents, the firm made a profit of $742 million for the first six months of 2018. The records which were filled today, Wednesday 26, indicated that most of the profits came from the sale of cryptocurrency mining equipment.
Apart from manufacturing crypto mining devices like the popular Antimer devices, the firm also engages in actual cryptocurrency mining where it held 85 percent of the total mining activities last year.
The prospects of the IPO, as Bitmain states, will be directed towards research, mostly Artificial Intelligence. The firm will also plow back part of the IPO proceeds into its operations to boost production.
Although the firm has not directly expressed how much it is eyeing from the Initial Public Offering, people close to the IPO have indicated that Bitmain is eyeing somewhere close to $3 billion. However, choosing Hong Kong, considering the view China has over digital currencies, the IPO will serve as a litmus test as to whether investors believe in virtual currencies. Bitmain’s IPO will be among the largest IPO’s to have been issued in Hong Kong.
Even in its final stages of launching an IPO, the firm has had its fair share of controversies this year. One of the major controversial issues came last month when Bitmain named firms that participated in the pre-IPO stages. However, most of the firms named distanced themselves from any such dealings.
The filing at the Hong Kong Stock Exchange is a draft copy and lacks important details such as how long the IPO will run and the number of shares to be offered.
With Bitmain indicating that its quest for a multi-billion dollar IPO will take off from Hong Kong, do you think investors are likely to throw their weight behind Bitmain?
Let us know your thoughts in the comments section below.