The world’s largest producer of crypto mining chips, Bitmain Technologies LTD, is bringing back plans to launch an initial public offering (IPO), as the Bitcoin price ascends to an all year high.
According to sources, the company is working with advisers in preparation for the launch of the US share sale; expected to kick off any time during the second half of 2019. The company aims to file listing paper work with the U.S Securities and Exchange Commission, as soon as next month; according to sources that preferred to remain anonymous.
A private round of funding last year saw the company get a valuation of around $15 Billion, and this time around it aims to reduce its funding target after taking into consideration the volatility of the crypto market. Word is that, the Bitmain could raise anywhere between $300, to $500 Million, in this fresh round of funding. The company is yet to set the funding target it hopes to meet though.
Before reviving plans of launching its own IPO, the company was looking at a Hong Kong IPO valued at $3 Billion; its listing application expired in March though. Despite Bitmain’s might and ambition to make a deep foray into the US market, another Chip maker is also harboring the same ambition. Canaan Inc. a rival company is also considering launching a share sale in the US after dropping plans of pursuing the $3 Billion Hong Kong IPO. The Hong Kong IPO has been losing popularity with more chip makers as well, after another company, Ebang international Holdings let its listing application lapse for a second time.
Bitcoin related IPOs have become quite a hot topic in Hong Kong, with the jurisdiction’s stock exchange as well as regulators, considering IPOs by Crypto companies ‘premature’ according to a South China Morning paper post. As debates rage on in Hong Kong, the crypto space is not showing any signs of slowing down. This is after Facebook’s Libra caught the attention of many in the financial world, coupled with the surging crypto prices as at now. Big firms such as Fidelity and E-trade are also close to launching crypto trading services according to reports, which is big news for crypto enthusiasts.
Bitmain reviving its plans to launch this new round of funding is most likely informed by the surging crypto prices. These plans were probably inconceivable a few months ago when the crypto prices were on the floor, but now that the market is getting animated again; chip makers such as Bitmain smell new opportunities and new possibilities.
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