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Bitmain Mining Company Files for IPO in China

Chinese based Bitmain Technologies Ltd., which leads the world in producing cryptocurrency mining chips, is planning an initial public offering (IPO) in Hong Kong, according to a report by the Wall Street Journal.

Information provided by their public filing indicates that $2.8 billion in revenue has been generated in the first half of 2018, a tenfold increase from just a year ago. Profits also rose to $742.7 million from $83 million, as noted by the WSJ. Bitmain, as well, held $886.9 million in cryptocurrency assets though the end of June of this year. By the end of 2016, the figure was $56.3 million and in 2015 it was $12.3 million.

A study by Sanford C. Bernstein & Co., which is noted in the article, estimates that Bitmain controls 85% of the market for cryptocurrency mining chips. The company recently bought a portion of a closed down Alcoa plant in Rockdale, Texas; creating 300-500 new jobs for the mining operation.

This will be one of the “…first major instances where the traditional capital markets and the newer cryptocurrency world will collide.” A valuation target and prediction of funds raised is yet to be disclosed. One can expect these figures with future paperwork filed with Chinese regulators.