Bitmain Technologies Limited Ipo

Bitmain technologies limited ipo

Crypto Giant Bitmain Opens its Books to the Public

Chinese software and hardware company

Bitmain Technologies Ltd., or Bitmain, is a privately owned company headquartered in Beijing, China that designs application-specific integrated circuit (ASIC) chips for bitcoin mining.

Company[edit]

It was founded by Jihan Wu and Micree Zhan in 2013. Prior to founding Bitmain, Wu was a financial analyst and private equity fund manager and Zhan was running DivaIP, a startup that allowed users to stream television to a computer screen via a set-top box.[1]

By 2018 it had become the world's largest designer of application-specific integrated circuit (ASIC) chips for bitcoin mining.[2] The company also operates BTC.com and Antpool, historically two of the largest mining pools for bitcoin.[3] In an effort to boost Bitcoin Cash (BCH) prices, Antpool "burned" 12% of the BCH they mined by sending them to irrecoverable addresses.[4]

Bitmain was reportedly profitable in early 2018,[5] with a net profit of $742.7 million in the first half of 2018,[6] and negative operating cash flow.[2]TechCrunch reported that unsold inventory ballooned to one billion dollars in the second quarter of 2018.[7]

In June 2018, Wu told Bloomberg that Bitmain was considering an IPO for producing capital to expand its producing hardware.[8] The company completed its $1 billion pre-IPO registration with the Hong Kong Stock Exchange in August,[9] and filed for IPO in September.[6][2]

Bitmain Technologies filed for IPO on September 26, 2018 with the Hong Kong regulatory agency and released their first public financial statement at a time where Bitcoin prices had dropped 65% from December 2017.

The price drop had hurt mining hardware sales that accounted for 96% of the company's revenue.[10][11] Bitmain will use a dual class share structure.

In Bitmain's case, this means the share held by company's founders would count as 10 votes.[11]

Bitmain's first product was the Antminer S1 which is an ASIC Bitcoin miner making 180 GH/s while using 80-200 Watts of power.[12]

Bitmain as of 2018 had 11 mining farms operating in China.[7]

Bitmain was involved in the 2018 Bitcoin Cash split, siding on the side of Bitcoin Cash ABC alongside Roger Ver.[13]

In December 2018 the company laid off about half of its 3000 staff.[14] The company has since closed its offices in Israel and the Netherlands, while significantly downsizing its Texas mining operation.[14]

In February 2019, Bitmain had lost “about $500 million” in the third quarter of 2018.[citation needed] Bitmain issued a statement saying “the rumors are not true and we will make announcements in due course.”[15]

On March 26, 2019, Bitmain's application for a Hong Kong initial public offering lapsed, six months after it was filed, as investors were reportedly concerned about the fall in Bitcoin's value.[16] The company issued a statement saying it would “restart the listing application work at an appropriate time in the future.” Bitmain also announced that Haichao Wang would serve as its new CEO, while co-founders Micree Zhan and Jihan Wu will continue as directors.[17]

References[edit]

  1. ^Wong, Joon Ian.

    Bitmain technologies limited ipo

    "China's Bitmain dominates bitcoin mining. Now it wants to cash in on artificial intelligence". Quartz. Retrieved 2017-12-04.

  2. ^ abcLucas, Louise (2018-09-27).

    "China's crypto mining rig-maker Bitmain plans Hong Kong listing". Financial Times. Retrieved 2018-09-27.

  3. ^"Chinese bitcoin mining giant Bitmain had revenues of $2.8 billion in the first half of the year". Business Insider. Retrieved 2018-11-07.
  4. ^"Why a Cryptocurrency Mining Giant Is Burning Money in a 'Black Hole'".

    Bitmain's Profit & Revenue Statements

    Motherboard. 2018-04-20. Retrieved 2018-11-07.

  5. ^Cheng, Evelyn (23 February 2018). "Secretive Chinese bitcoin mining company may have made as much money as Nvidia last year".

    Want to read this important story?

    CNBC. Retrieved 30 April 2018.

  6. ^ abHu, Bailey (2018-09-27).

    Bitmain technologies limited ipo

    "Bitmain files for IPO in Hong Kong". TechNode.

    China’s Crypto Firm Bitmain Technologies Files For HK IPO

    Retrieved 2018-09-27.

  7. ^ abYang, Joyce (October 2018). "Bitmain IPO concerns: the crypto giant recorded a big loss in Q2 2018". Techcrunch.

    Prabhat dairy ipo analysis

    Retrieved 8 November 2018.

  8. ^Schmidt, Blake (7 June 2018). "Crypto's 32-Year-Old Billionaire Mining King Considers an IPO".

    Bitmain technologies limited ipo

    Bloomberg. Retrieved 28 September 2018.

  9. ^Zhao, Runhua (2018-08-13). "World's largest bitcoin mining company Bitmain plans an IPO greater than Facebook's".

    Bitmain Technologies Files IPO with the Stock Exchange of Hong Kong (SEHK)

    TechNode. Retrieved 2018-08-13.

  10. ^Patterson, Michael (September 26, 2018). "The World's Biggest Crypto Company Just Opened the Books for Its IPO".

    www.bloomberg.com.

    Navigation menu

    Retrieved 2018-10-21.

  11. ^ abJohn, Alun. "Cryptocurrency giant Bitmain chooses Hong Kong for IPO".

    U.S. Retrieved 2018-10-21.

  12. ^"MANIC MINERS: Ten Bitcoin generating machines". Retrieved 2018-11-06.
  13. ^Kharif, Olga (17 November 2018). "Bitcoin Cash Clash Is Costing Billions With No End in Sight".

    Twitter ipo date 40.5

    Bloomberg. Retrieved 18 November 2018.

  14. ^ abRoberts, John Jeff (15 October 2019).

    News feed continued

    "Texas Bitcoin Mining Startup Gets $50 Million From Peter Thiel to Steal China's Crypto Crown". Fortune. Retrieved 16 October 2019.

  15. ^Ji, Qian. "比特大陆回应2018年Q3财报亏损约5亿美元:传闻不实_财经网 - CAIJING.COM.CN". m.caijing.com.cn. Retrieved 25 February 2019.
  16. ^Lucas, Louise.

    "Plans for world's largest cryptocurrency IPO shelved".

    We've detected unusual activity from your computer network

    Financial Times. Retrieved 27 March 2019.

  17. ^FIoretti, Julia (26 March 2019). "Cryptocurrency miner Bitmain lets Hong Kong IPO application lapse". Reuters.

    😱 USD Coin Launch - Samsung Squire Mining Chips - Coinbase Listing - Many New Assets - Bitmain IPO

    Retrieved 27 March 2019.