After posting eye-popping returns in 2017, the recent bear market has some cryptocurrency firms amid declining returns. Don’t count industry giant Bitmain among them.
Citing an email obtained from a source close to the China-based firm, reports that — best known for manufacturing equipment — raked in $1.1 billion in profit during the first quarter of 2018. Conservatively, the company expects to earn $2 to $3 billion in profit for the fiscal year.
Remarkably, those figures place Bitmain nearly on par with chipmaking giant , who a net income of $1.2 billion during the first quarter and has a ~$150 billion market cap.
It also marks a significant increase since last year when Bitmain that it brought in $1.2 billion in profit and $2.5 billion in revenue — much less than the $3 to $4 billion originally estimated by analysts.
The email also confirmed that Bitmain is in the final stages of preparing to hold an initial public offering (IPO) on the Hong Kong Stock Exchange (HKEX). While the date of this listing has not yet been announced, the firm said that it will go public “very soon.”
As CCN , Bitmain is holding another round of financing before the IPO despite having just closed a $400 million round earlier this year. The firm is said to be seeking to raise as much as $1 billion at a $14 billion valuation, a ~16.5 percent increase from its previous funding round.
The firm has been using this new capital to finance a massive expansion, both of its business interests and its physical operations. In addition to purchasing major stakes in EOS creator , cryptocurrency trading firm , and web browser , Bitmain has placed a heavy emphasis on carving out a significant share of China’s booming artificial intelligence (AI) market.
Bitmain has further been expanding geographically, opening new mining centers in Quebec and the U.S. The company also moved into a in Silicon Valley while concurrently the size of its Israel-based development center.
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Published at Mon, 30 Jul 2018 22:30:51 +0000
bitcoin Companies
