Crypto Giant Bitmain Reveals Profits and Chooses Hong Kong for IPO
Bitmain Technologies, the Chinese virtual currency mining firm co-founded by billionaires Jihan Wu and Micree Zhan, released its first public financial statements in a Hong Kong regulatory filing on Wednesday, confirming its intention to go public on the Hong Kong stock exchange.
Bitmain filling revealed that it made a profit of $742 million for the first six months of this year. Revenue was up tenfold in the same period, to $2.8 billion as of the end of June, and adjusted return on equity was 58.8 percent.
The bulk of the company’s revenue came from selling hardware to mine cryptocurrencies. The company plans to use the proceeds of the IPO to invest in research and development and expand its production output.
Two of Bitmain’s biggest rivals – Canaan and Ebang International – are also pursuing IPOs in Hong Kong as they seek funding for a technological arms race. Bitmain, which controlled an estimated 85% of the market for cryptocurrency mining chips last year, risks losing its competitive edge, Sanford C. Bernstein & Co. analysts wrote in a report last month.
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