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News making rounds suggest that the China-based Bitcoin mining giant, Bitmain Technologies, has resolved to seek an initial public offering (IPO) from the United States Securities and Exchange Commission (SEC). The crypto community woke up to the news of the secret IPO listing with the SEC on October 30 after prior rumors.
According to a report by local news website Tencent News, the Bitcoin mining hardware manufacturer decided to let go of the Hong Kong stock exchange (HKEX) and now attempts to get the approval of the SEC behind closed doors. It also appears that Bitmain obtained the multinational investment banking company Deutsche Bank as a sponsor.
The listing, which apparently was done in secret, is for an IPO in the U.S. as the company failed to initiate an IPO last year with the Hong Kong Exchange (HKEX). This time, it seems the firm is looking to try a different route, testing all available options.
You will recall the chips master filed for the application of an IPO last year with the HKEX. The firm was unable to pull through with the plan due to the unforeseen crypto winter that wreaked havoc on virtually every crypto-oriented firm. Sadly the time for the filing elapsed in March, but Bitmain promised to file again, and it is indeed living up to the promise.
This year has been so much different for crypto firms. It wasn’t much of a shocker to hear that Bitmain is ready to file again. However, the secret filing with the US SEC came as a shock.
Even more, people familiar with the matter revealed that there was an emergency meeting which led to the sudden removal of one of the co-founders and executive director, Micree Ketuan Zhan. With Zhan out of the picture, the other co-founder Jihan Wu now runs the firm as the co-founder and executive director.
Cards on the table indicate that the company is working really hard to ensure the filing is a success this time. For starters, they have reshuffled administration in the firm, and hired the former representative of Nasdaq China, Zheng Hua to make the switch to the US without any hurdles. Zheng is expected to fill the position of a consultant to the firm, guiding it to a holistic plan for the success of the project.
Should everything go as planned, Bitmain is looking to raise up to $500 million. Comparing this target with its initial target proposed last year when it had filed with the HKEX, we can all agree that things have gone downhill. Notwithstanding, we are eager to see how well this grand funding project turns out to be.
Quite coincidentally (or not), another Chinese cryptocurrency mining giant, Canaan Creative, has also filed this week for an IPO. It certainly appears that the cryptocurrency mining industry is getting hot in China. Very hot.