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Bitmain weighing public offering: Bloomberg
Posted on Friday, 08 June 2018 14:14
Bitmain Technologies, a leading producer of cryptocurrency mining chips, is said to be considering a future initial public offering (IPO) as chief executive Jihan Wu is exploring an expansion beyond its original market, Bloomberg reported.
In an interview with the news provider, the 32-year-old self-made billionaire said the group generated revenue of USD 2.50 billion last year and with this success could choose to pursue a public offering.
Wu added that should a flotation go ahead it would likely be overseas and even named Hong Kong as a potential bourse.
An IPO could boost Bitmain’s profile and comes as one of its main competitors, Canaan Creative, is also pursuing a listing that could be worth around USD 1.00 billion, a recent report by Reuters suggested, citing people familiar with the situation.
Wu is said to be focused on expanding the company’s operations to advance “technology beyond what we’ve already achieved”, he told Bloomberg.
One route the business may pursue is developing custom chips for areas such as artificial intelligence (AI), called application-specific integrated circuits (ASIC).
Chinese authorities back many AI groups, unlike cryptocurrency companies.
Bitmain’s revenue is already 12.0x that of Canaan’s and Wu has previously said the group is worth USD 12.00 billion.
However, Bloomberg compared the firm to listed chip makers and noted that at a similar multiple to Nvidia and MediaTek, the company could be valued at about USD 8.80 billion.
CCN, which reports on the latest bitcoin news, suggested Bitmain controls 80.0 per cent of the manufacturing market for ASIC mining devices, with Canaan accounting for about 15.0 per cent of the industry.
The group was founded in 2013 and now claims to be one of the most recognisable bitcoin companies worldwide.
Beijing-headquartered Bitmain has offices in Amsterdam, Hong Kong, Tel Aviv and Shanghai.
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