Chinese ASIC manufacturer Bitmain has announced plans to launch an initial public offering (ICO) and has managed to secure pre-IPO funds worth $300 million from Sequoia Capital. It also has plans to raise $1 billion, thereby boosting the company’s valuation to around $15 billion.
As reported by Chinese news outlet, Touchweb, Bitmain plans to offer stock to the public via the Hong Kong Stock, later this year. Its IPO application is expected to be submitted in August.
Bitmain is the largest crypto mining manufacturer in the world and boasts a market share of three to five times more than its closest competitor, Canaan. At present the company, which accounts for almost 50% of all Bitcoin mining power, continues to aggressively expand in an effort to dominate the crypto mining landscape. In addition to ASIC chips, Bitmain is also behind 50% of BTC mining pools.
Bitmain was established in 2013 and has seen its revenue grow year on year. According to founder, Jihan Wu, the company’s earnings have already reached $2.5 billion this year. Moreover, its net profit in 2017 was fifteen times higher than in 2016.
ASIC Miner Supremacy
Despite its undoubted success, Bitmain has attracted a great deal of criticism. For many, the whole process of manufacturing ASICs miners has become centralised and runs counter to the very principles upon which crypto currencies and crypto mining are based. That two companies own nearly all distribution rights to a cryptocurrency’s hashing power (BTC), also lends weight to these claims.
And while ASICs are available for purchase by private individuals, their prices are often prohibitive to solo and amateur miners. Instead, it’s primarily the large mining farm operations that benefit the most. Although temporary solutions to ASIC dominance have been proposed, Bitmain’s relentless expansion continues unabated.