[2018-09-26]Bitcoin Mining Giant Bitmain Just Officially Filed for an IPO

[vit05]

coindesk

Bitmain, the Beijing-based cryptocurrency mining giant, has officially filed an application to go public on the Hong Kong Stock Exchange (HKEX).

Published on Wednesday, Bitmain's long-awaited initial public offering (IPO) prospectus follows various news reports that the mining giant has been mulling a Hong Kong listing for a multi-billion dollar public fundraising. The process has not been without its share of controversy, with major firms denying their role in a pre-IPO funding phase in a development that cast doubt on the company.

As the application is still in draft form and pending further listing hearings from the HKEX, it remains unclear how much the firm will be valued at eventually. As shown in the posted application, a number of details remain redacted, including the number of shares that will be offered and the timetable for the public offering.

Still, the prospectus gives insight into Bitmain's financial standing as well as the company's structure and inner workings.

According to the filing, the firm made a total of $2,517,719,000 in revenue in 2017, a major increase from the $277,612,000 in revenue it generated over the course of 2016. As of June 30 this year, Bitmain has made $2,845,467,000 in revenue.

Of that revenue, Bitmain grossed profits of $1,212,750,000 last year and $1,030,151,000 for the first half of 2018, up from $151,351,000 over 2016. Before taxes, the numbers were $137,750,000 in 2016, $897,376,000 in 2017 and $907,792,000 for the first half of 2018.

CoinDesk previously reported Bitmain's profits have surged significantly year-on-year, which jumped from $100 million in 2016 to $1.1 billion in 2017 and $1.1 billion in Q1 2018, based on documents obtained by CoinDesk.

The prospectus states that, after adjusting for costs and expenses, Bitmain's net profits were $48.6 million in 2015, $113.5 million in 2016, $952.5 million in 2017 and $952.1 million in Q2 2018.

Bitmain also reported an $886.9 million balance of cryptocurrencies denominated in bitcoin, bitcoin cash, ether, litecoin and dash as of June 30 after factoring in a net loss of $102.7 million over the last 6 months, more than 10 times the net losses on previous years of holdings.

This accounted for 28 percent of its total assets so far this year, the document stated without breaking down a coin-by-coin allocation. Cryptocurrency holdings were previously valued at $56.3 million and $872.6 million, or 30 percent of assets, by the end of 2016 and 2017, respectively.

[1Referee]

How sweet, a calculated BCash pump yesterday following the news of their IPO application, and as happened with other calculated pumps, yet again a 20% increase. They aren't doing much to cover how Bitmain tied that coin is. It's pretty much a stock or security, just like how XRP moves up and down based on Ripple's performance.

The prospectus states that, after adjusting for costs and expenses, Bitmain's net profits were $48.6 million in 2015, $113.5 million in 2016, $952.5 million in 2017 and $952.1 million in Q2 2018.

It's going to be interesting to see what Bitmain's Q3 and especially Q4 profits look like, because it's impossible that the bear market hasn't significantly affected their sales. Considering that smart investors and the regulators do their work and value strong profit reports, they will for sure know that weaker net profits are imminent in the upcoming quarters. We'll see how much of an obstacle that will be.

[Kemarit]

Make sense now, I was surprised by the price jump of Bitcoin Cash by almost 30% now so its due to the IPO. But then again, such spike is price only mean one thing, pump-and-dump. For now the picture is not clear so its really going to be interesting to see how their Q4 earnings will be affected by the bear market and their IPO. They really need some kind of news to bolsters their Bitcoin Cash holdings otherwise it will continue to be affected in this bear market.

[BitHodler]

How sweet, a calculated BCash pump yesterday following the news of their IPO application, and as happened with other calculated pumps, yet again a 20% increase. They aren't doing much to cover how Bitmain tied that coin is. It's pretty much a stock or security, just like how XRP moves up and down based on Ripple's performance.

It's up even more as we speak. It really looks like they want to bump their Bcash holdings in an attempt to tease everyone reviewing their position. My guess is that they will try to reach 0.1BTC as benchmark value.

This pump will more likely signal that they are trying to manipulate the value of an asset they are so deeply invested in. Seriously, what business does something like that? It only makes an actual listing less likely.

XRP went up significantly after the announcement that xRapid is very close to becoming operational, so it's more than similar how news concerning the main company affects its underlying asset.

[audaciousbeing]

This is misplaced priority and a dent on the entire crypto space. I cannot imagine a company whose entire wealth and relevance is tied to the crypto world is going to the stock market to raise fund and their entire goal is to get listed on the stock exchange market. The interpretation I can get from this is that they don't trust the crypto market for them to raise their funds from and equally contribute to the development of its market.

In the article, the part I was interested in is the part of what they intend to use the proposed funds raised for which is not clearly outlined. They are planning on expansion yet they are in China. The same China that has kept a tight leash on everything that concerns crypto and the moment every option they have considered fails, the next they want to stop is mining in which when that happens, companies like Bitmain would really be hit hard that would likely return them back to the position before the "Windfall" or stop existing all together. What then happens to the people that have purchased their shares?.

[acheampong64]

These are some of the milestones we've been always waiting for in crypto. When companies do that and get the trust of the common civilian, it boosts the market. And I can see why people have been saying that the move by Bitmain drove Bitcoin Cash up since yesterday. We hope for more good news.

[dreamhouse]

Not that good time now for an IPO, I am wondering why they do it now? must have some squeeze in funding?