Mining giant Bitmain can enter the IPO

Mining giant Bitmain can enter the IPO

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Leading manufacturer of mining equipment Bitmain can become a public company, having conducted a record for the cryptocurrency industry placement of securities.

According to Bloomberg, CEO of Bitmain Jihan Wu is preparing the basis for an IPO and can implement its plan in the near future. If this happens, then as jurisdiction for the placement of securities will be considered Hong Kong or foreign markets, where the trade is conducted in US dollars. This was stated during the interview by the head of the company, who in the past avoided communication with the press.

“The challenge is to develop our technology beyond what we have already achieved,” he said.

According to Wu, his company earned $2.5 billion last year, or slightly less than analysts had previously estimated. Also during this period Bitmain earned 12 times more than Canaan Creative, another manufacturer of mining equipment, which recently decided to enter the IPO.

According to some data, Bitmain can control up to 80% of the market of specialized devices for the cryptocurrency. Wu estimates his company at $ 12 billion, while third-party appraisers call the value of about $ 8.8 billion. Together with co-founder Mikri Jahn, he owns 60% of the company, and Wu owns a smaller stake. Asked about his personal investments and cryptocurrency savings, the head of Bitmain refused to answer.

Analyst Mizuho Securities Asia Ltd. Kevin Wong believes that the issuance of Bitmain securities will draw the attention of investors from Hong Kong, whose opportunities for investing in companies of this kind are still very limited.

“They can overstate their assessment, because there are very few companies like them. However, the viability of their business is questionable,” he said, referring to the high competition in the market of mining equipment and the volatility of the courses.

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