• 17 mins Marijuana Looks For Its Next Big Win In New York
  • 3 hours This Billion Dollar Project Is Reshaping The LNG Business
  • 5 hours China Is Taking Data-Mining To The Next Level
  • 21 hours Analysts Bet On Potential Fed Rate Hike For Christmas
  • 1 day Corporate Bounty-Hunting Raked In $168M This Year
  • 1 day The Science Behind Melting Gold At Room Temperature
  • 1 day Saudi Aramco Hit With New Variant Of Old Cyberattack
  • 2 days France Pledges Moves To Prevent $1B Economic Catastrophe
  • 2 days Bitcoin Miners Reel As IPO Dreams Crumble
  • 2 days Gold Moves Sideways On Weak Jobs Report
  • 3 days Is This The End Of The Cannabis Bloodbath?
  • 3 days Markets Hit By Economic Fears, Political Turmoil in U.S. And Europe
  • 3 days The Next Wave Of Solar Tech Is Here
  • 3 days The “Everything Bubble” Has Popped
  • 4 days This 7-Year Old Is Earning 8 Digits
  • 5 days Can Crypto Outperform Equities In The Long-Term?
  • 6 days UK Suspends Top-Tier Investor Visas In Money Laundering Crackdown
  • 6 days Asia’s Wealthiest Double Down On Blockchain Tech
  • 7 days The Midwest’s Top Talent Is Looking For Greener Pastures
  • 7 days Huawei Plummets As CFO Faces Extradition To The U.S.
SEC Boss Speaks Out Against Bitcoin ETF

SEC Boss Speaks Out Against Bitcoin ETF

Crypto-enthusiasts and traders alike have…

Regulatory Pressure Spooks Crypto Markets

Regulatory Pressure Spooks Crypto Markets

Last week, bitcoin fell to…

Michael Kern

Michael Kern

Safehaven

Michael Kern is a newswriter and editor at Safehaven.com, Oilprice.com, and a writer at Crypto Insider. Michael has several years of experience covering cryptocurrencies, and…

Contact Author

  1. Home
  2. Cryptocurrencies
  3. Bitcoin

Secretive Crypto Miner Opens Its Books Ahead Of IPO

BTC

Chinese crypto mining giant Bitmain—a longtime, secretive crypto powerhouse with 30 percent of its assets in cryptocurrencies—has finally opened up its books for all to see and confirmed that’s it’s preparing to go public on the Hong Kong stock exchange.

It’s a big deal because no one has ever seen inside Bitmain, and now we know that it managed to make over $740 million in profit in the first half of this year—despite the fact that cryptocurrencies have been on a downward spiral.

And that $740 million represents a nine-fold increase in profits from the same period last year. It’s pretty impressive against a backdrop that has seen digital currencies lose some $600 billion since the start of the year.

(Click to enlarge)

Bitmain saw revenue jump 9-10-fold to $2.8 billion in the first half of 2018, with an adjusted return on equity of 58.9 percent. By the end of June, the Chinese crypto giant had nearly $887 million in cryptocurrency assets, as Bloomberg reports.

So, while the 30 percent in crypto assets is basically a wash, Bitmain has a massive user base. As of the end of June, it had 80,000 customers—up from only 6,000 three years ago and 46,000 last year.

There are multiple big revenue streams here. Related: Poll: 80% Of Consumers Bullish On Bitcoin

Bitmain is the world’s largest provider for crypto miners, and it’s big into chips and hardware products based on AI, which will remain a key focus. For anyone who’s heard of ‘Antminer’ devices, this is Bitmain’s main territory, and Bitmain claims it has cornered 74.5 percent of the global market share for crypto mining hardware, according to Frost & Sullivan, as reported by Business Insider.

Antminers make it possible to mine cryptocurrencies, and this hardware is where Bitmain is raking in the cash. In the first half of 2018, ‘Antminers’ accounted for 94 percent of Bitmain’s revenue, up from 77 percent in 2016 and 90 percent in 2017.

It also brings in revenue from mining farms, shared mining pools and blockchain services.

The crypto investor world will be closely watching the planned Bitmain IPO because even though this playing field is getting more crowded and others are also gearing up to IPO in Hong Kong, Bitmain will be the litmus test. And if it successfully IPOs, it could snowball in the bulls’ favor.

Bitmain remains highly influential in the crypto world. Watch what happened to Bitcoin Cash right after the Chinese mining giant revealed its financials, showing its bet on this specific digital currency. Bitcoin Cash rallied 20 percent right after this revelation, paring some of those gains later on Wednesday, but still up over 16 percent as of the time of writing.

(Click to enlarge)

Source: CNBC

We don’t know yet what valuation Bitmain is targeting, and they haven’t even hinted at how much they hope to raise in an IPO.

In July, Bitmain closed a $1-billion pre-IPO financing round led by China International Capital Corporation, with a $15-billion valuation, Coin Desk reported.

According to CoinDesk, though, the IPO could be as high as $18 billion at a market capitalization of $40-$50 billion. That would make it one of the biggest IPOs ever.

By Michael Kern for Safehaven.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment