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China’s Tencent and Japan’s Softbank Back $15 Billion Mining Giant Bitmian’s ICO

The world’s dominant cryptocurrency mining hardware producer Bitmain has reportedly signed its Pre-IPO financing contract with China’s technology giant Tencent, China International Capital Corporation (CICC) and Japan’s Softbank. Since then, Bitmain’s valuation has been boosted up to $15 billion.

Bitmain was founded in 2013, as the largest crypto mining hardware manufacturer in the world, its market share is 3 to 5 times higher than the its most prominent competitions Canaan. The Bitmain-based mining pools collectively accounting for nearly 50% of all Bitcoin mining power and its ASIC dominance may continue as it completed a Series B funding of US$ 400 million.

According to Bitmain official, Bitmain’s revenue in 2017 reaches US$2.5 billion which 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. Its gross margin is as high as 60%.

For an analogy, even the world’s most valuable unicorn company Ant Financial, with a valuation of US$150 billion, its valuation is only 10 times of Bitmain.

Not surprisingly, the world’s biggest companies and investors are interest in the brand new crypto mining industry and willing to participating in its pre-IPO financing. It was reported that Bitmain has completed its pre-IPO raise on last Saturday.

Tencent, a Chinese multinational investment holding conglomerate, with subsidiaries specialise in various internet and technology related services, has banked Bitmain’s IPO. The tech giant has put a lot of effort in blockchain layout, this investment initiative is also one of its business strategy.

As well as Japan’s Softbank, the largest shareholder of Uber, is also bullish on Bitmian’s future development. This also shows the growing mainstream appeal of the crypto mining industry.TencentbackedfooddeliverystartupMeituanDianpingseeksHongKongIPO

It was reported that, Bitmain is going to hand in its listing application to the HKSE on August 30 and may complete the list processing by the end of 2018. The China International Capital Corporation Limited (CICC) will hold the post of the lead underwriter of Bitmain’s IPO. Some industrial insiders expect a $30 billion to $40 billion market cap as Bitmain goes public.


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