Bitmain Targeting $3B IPO, Ready to File Application this September

China-based cryptocurrency mining equipment maker Bitmain might initiate an initial public offering (IPO) in Hong Kong as early as this September, sources familiar with the matter told Bloomberg. The largest crypto mining chips manufacturer is targeting $3 billion, the sources said. Bitmain, which is led by co-founder Jihan Wu, intends to file a listing application with the Hong Kong stock exchange. The company has recently completed a funding round, during which its total valuation was estimated at around $15 billion.

In early July, we reported that Bitmain was valued at about $12 billion and that CEO Jihan Wu was thinking about IPO-ing in Hong Kong. However, no deadline was revealed at that time.

Given a successful IPO, the cryptocurrency market would find support to retake its bullish trends. The last few months have been a disaster for Bitcoin and altcoins, with the former losing over three-quarters of its value compared to January levels.

This would be a lucrative move for Bitmain itself, as it would use the extra money from the funds raised to invest in other areas, such as artificial intelligence. Wu revealed that he had been interested in AI and innovative technologies.

People familiar with the situation, who chose to stay anonymous given that the information is private, said that the IPO target might change as the details of the listing haven’t been concluded yet. However, Bitmain spokesperson Nishant Sharma declined to provide any comments.

At the end of July 2018, Bitmain recorded a net profit of more than $1 billion in the first quarter of 2018. In annual terms, the net profit is estimated to reach from $2 to $3 billion.

Bitmain’s primary business is the manufacture of application-specific integrated circuits (ASICs), which are used by cryptocurrency miners to generate Bitcoins or other digital currencies. The Beijing-based company also operates mining pools.

Bitmain’s main competitor, Canaan Creative, has already filed for an IPO in Hong Kong, targeting for $1 billion.

Recently, Bitmain was accused of supporting the Segwit 2x Bitcoin hard fork and had been pumping Bitcoin Cash.