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It seems like the China-based ASIC chips master Bitmain, which is one of the largest companies that offers cryptocurrency mining equipment, is back in the initial public offering (IPO) game again.
You will recall that Bitmain hasn’t had the best year since the 2018 crypto winter. From downsizing its workforce to slamming the brakes on its Texas mining operation and closing down its offices in the Netherlands and Israel, it has been one horrific ride for the crypto firm.
The 2018 crypto winter seemed to have halted its plans for an IPO too. The firm behind the supposed largest Bitcoin mining pool happily filed for an IPO with Hong Kong regulatory agency in the third quarter of 2018; however, it didn’t pull through with the plan, leaving the application to lapse in March this year.
With rumors flying in the air, the firm told the public that it will revive the IPO project in due time. And I guess it is ‘due time’ already, as the firm is reportedly reviving its plan for an IPO.
Since the beginning of the year, things have been looking up for the crypto sector – especially the Bitcoin market. Concluding that the recent ‘sustained’ rise in Bitcoin’s price may be the reason Bitmain is revisiting its IPO plan is a no-brainer. The news came in just as Bitcoin price hit a new high on June 22 – spiking to over $11,000.
Attempting to Raise $300 to $500 Million for Crypto Mining Operations
Although we are yet to get a confirmation from the firm, people with knowledge of the project, who would rather be anonymous, sounded pretty sure. The ‘insiders’ also disclosed that the firm is working with advisers on the issue of U.S. share sale, which is proposed to take place in a month or less. The aim is to file an official listing document with the U.S. Securities and Exchange Commission (SEC). This came after its initial IPO listing with Hong Kong, valued at about $3 billion, elapsed in March this year.
The insiders also disclosed that the firm is planning to reduce its fundraising target due to increased price volatility in the crypto space. They opined that the firm could raise between the range of $300 million to $500 million from the U.S. share sale.
2019 has been a good year so far compared to last year. The Bitcoin price has more than tripled this year and more ‘big players’ are getting into the space. Nonetheless, it is crucial to state that the information contained in this article is subjected to change as the firm is yet to decide on the matter and make a public announcement. Until then, we should stick with the hopes that something big may be on the way.