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.