Chinese crypto conglomerate Bitmain is reportedly filing for an initial public offering (IPO) in which it hopes to raise $18 billion, according to CoinDesk. Bitmain, which is the world's leading producer of crypto mining chips, or ASICs, has already closed $450 million in private funding from participants including Sequoia, GIC, and IDG Capital, as well as a $1 billion funding round led by Chinese tech giant Tencent and Japan's SoftBank.
- The company is set to file for its IPO in September 2018 for listing on the Hong Kong Stock Exchange (HKSE). According to documents seen by CoinDesk, the listing is planned for the end of 2018 or Q1 2019 and will be underwritten by China International Corporation. Bitmain's listing follows a raft of other Chinese unicorns going public, with direct crypto mining competitors Canaan Creative and Ebang Communication having also filled for listings on the HKSE.
- This would mark the world's largest crypto-focused IPO, and one of the largest public floats in history. The record for the biggest IPO to date is held by Alibaba, which raised $25 billion in 2014, while Facebook's highly anticipated IPO raised $16 billion in 2012. Bitmain's anticipated public offering is set to dwarf the $1 billion target set by Canaan and Ebang, and could deliver the company a market cap of $40 billion to $50 billion.
Bitmain's decision to pursue an IPO could bring more legitimacy to the crypto space. The completion of such a large public offering by a crypto company would serve as a major step toward the mainstream for the entire industry, enabling large swathes of investors to get exposure to crypto-related activities on the public market.
Moreover, unlike ICOs, public stock offerings place regulatory scrutiny on companies and require them to meet certain transparency standards. This choice therefore could help Bitmain gain more credibility with investors, and suggests that crypto-focused companies are growing more cognizant of the need for a regulatory and legal framework to attract long-term investment, legitimize their businesses, and accelerate growth.
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Chinese crypto conglomerate Bitmain is reportedly filing […]