Bitmain alleged to close Pre-IPO funding with $12 billion valuation
According to Jiweinet, Bitmain is in the pre-IPO round of financing with US$12 billion in valuation with investors like Sequoia. The deal will be closed within this month. As the global giant of the crypto-mining machines, Bitmain will submit listing applications to Hong Kong Stock Exchange in September this year and will be officially listed before the end of the year. The market value is expected to reach 30 to 40 billion US dollars.
Originated from chips, Bitmain has established a complete blockchain and cryptocurrency ecosystem through chips, miners, mining farm, mining pools and cloud mining contracts.
Bitmain’s revenue in 2017 is more than 8 times of its 2016 revenue. Its net profit in 2017 is 15 times of that in 2016. The number of Bitmain in Q1 2018 is already close to the full year data of 2017. Bitmain’s gross margin is as high as 60%.
Bitmain is showing a strong momentum in Q1 2018 because buyers need to pay upfront at full price for the machines as there are huge demand. Bitcoin price surged in Q4 2017 and peaked in December 2017. Cryptocurrency has been dropping in Q1 2018, which will certainly impact the operation of Bitmain in Q2. Even so there will be significant growth for the company in 2018. The USD 12 billion valuation at Pre-IPO round is only eight times the net profit of US$1.5 billion in 2017. Therefore, the pre-IPO is only open to previous investors only.
It’s said that Sequoia China, Sequoia USA, Yuri Milner, and Singapore government funds invested US$400 million in exchange for 3.33% of the company’s shares. Investment banks generally believe that the Bitmain will be listed on the Hong Kong Stock Exchange at 20 PE.
Canaan Creative, or Avalon miner, might be the first “blockchain” shares in HKEX as reported in May. Bitmain has greatly surpassed Canaan on financial data. For example, in 2017, Bitmain’s revenue is about 10 times that of Canaan and 20 times in net profit.