Crypto Unicorn Bitmain Weighs $18 Billion IPO, One of World’s Largest
Bitmain Technologies, Ltd. will be released.
According to a document obtained by CoinDesk, the cryptocurrency mining company is submitting an IPO with a market capitalization of $ 40 to $ 50 billion, which is worth $ 18 billion in September this year. It will be acquired by China International Capital Corporation and will be listed on the Hong Kong Stock Exchange in the fourth quarter of 2018 or the first quarter of 2019. The wave of Chinese unicorns, including Canaan Creative, a competitor in the Bitco mining industry, and Ebang Communication, are on the open market.
Bitmain, one of the most valuable cryptanalysts, closed the $ 1 billion pre-IPO financing round of $ 15 billion on July 23 and nearly doubled the Cryptocurrency Exchange Coinbase's $ 8 billion rating reported in April I'm overboard.
Now $ 18 billion in IPO sticker prices Bitmain can replace the social giant Facebook with one of the largest public services in history. SoftBank Group and Tencent Music will be listed in the first and second lists of Alibaba and Spotify in the same fiscal year.
Tencent Holdings, Ltd., Softbank Group, China National Gold Group and an unnamed sovereign fund that managed assets of $ 15 billion before the IPO round. The $ 5 million promise was finalized by July 18th and was signed by BitMain Technologies Holding Company, a Chinese technology billionaire Lei Jun, and a Cayman Islands investment holding company associated with a founder of consumer electronics company Xiaomi, Inc.
Sequoia Capital China led Bitmain's $ 50 million Series A and $ 400 million Series B rounds with the help of IDG Capital in San Francisco, Coatue Management in Menlo Park, DST Global in Russia, EDBI and GIC in Singapore. Series A rounds accounted for 5 percent of the $ 1 billion in post-valuation and Series B rounds valued the company at $ 12 billion.
The stock price and volume are not disclosed, but the listed investment bank calculates the P / E ratio at 20 for the first publicly listed year. The financial figures that underpin this figure show that Bitmain earned a total of $ 3.2 billion in 2016, 2017 and 2018, $ 2.5 billion in 2017, and $ 2 billion in the first quarter of 2018. Bitmain expects a profit of $ 2 billion by the end of the year.
Various encryption strategies
Five years ago, Jihan Wu approached Micree Zhan for engineering Advanced Application-Specific Integrated Circuit (ASIC) chips to more efficiently mined Bitcoin. This led to the establishment of Bitmain, a leading cryptocurrency mining industry. The operation has been expanded since then as an alternative cryptocurrencies bit coin cash, litecoin, dash, siacoin and ethereum.
Through the IPO, the size of the co-founders' merger could amount to about $ 30 billion, assuming 60% of the company is kept together in an interview with Bloomberg in January 2018.
The Investor's Guide to IPO shows exactly how important BitMain's mining business is. Last year, BitMain equipment accounted for 66.6% of the total mining volume, and BitMain-run decryption mines accounted for 40% of the entire mining network.
When the brochure was written, BTC.com, the world's largest mining mine, counted 560,000 computers mining about 11,200 of a total of 36,000 bit coin blocks. The second largest mining complex, AntPool used more than 440,000 machines for bit coin and alternate creep talk calls.
Bitmain also unveiled $ 1 billion, $ 11 billion, and $ 10 billion, respectively, of bit coins in the first quarter of 2016, 2017, and 2018, in addition to hardware costs and revenue from pool transaction fees. Blocktrail, a Bloom Chain data analysis service, was partially funded to support up to 30 block-chain companies for block-chain research in early 2016.
External investments are known to represent a broad effort to make Bitmain a large enterprise with a decryption infrastructure, and it has become increasingly true in recent months. Since May, Bitmain has invested in BizKey, a cryptocurrency POS system. Circle, the Cryptocurrency payment system, has added the ethereum extension to the Opera web browser and partnered with Huawei Mobile Services in the mobile cryptocurrency application.
Bitmain also uses these technologies to build a wallet, exchange and trading platform that promotes the bitcoin cash ecosystem, a branch of bitcoin cryptocurrency that Chinese companies regard as a potential public. According to the Prospectus, Bitmain is "strategically developing" bit coin cash by mining, investing and trading coins and related technologies to realize significant profits. Bitmain announced yesterday that it invested in tribeOS, a bitcoin cash ad network the day before yesterday.
Calculate the chip
In 2013, the BM1380 Bitmain graphics chip was built using the 55nm process, which is the most advanced circuit-mode mode at the time. From 2014 to 2015, the company responded to the competition by moving the 28nm BM1382, BM1384 and BM1385 chips into a 16nm BM1387 chip in 2016.
Today, we are an older generation chip manufacturer struggling to catch up. Bitmain selected Spreadtrum Communications, 17, as the second largest integrated circuit designer in China, according to the brochure.
Huawei HiSilicon is also a leader in China.
As of December 2017, Pfizer Hai Silicon has supplied 16nm chips, while Taiwan Semiconductor Manufacturing Company has supplied 10nm chips to consumer goods companies such as Apple in the world's largest semiconductor company, Bitmain. . Equivalent to Huawei HiSilicon's Kirin 970 chip. Unreleased 10-nanometer chips belong to the new 7-nanometer and 12-nanometer chip classes that BitMain will launch later this year.
In half a century, Bitmain occupied 8% of the domestic chip design market, where Huawei HiSilicon achieved 17% for 14 years. Bitmain can soon or almost overcome Huawei HiSilicon's local presence at this rate, and according to its investment guidance, it is heading to the US chip industry.
While Intel continues to be at the forefront, the Chinese market is already pioneering the US market in global chip economies.
Silicon Valley felt pressure. Bitmain reported in February that it was as profitable as Nvidia, a 24-year-old stock price target with AMD in April.
Analysts expect Bitmain's future ethereum mine equipment to reduce orders for Nvidia and AMD chips. They were afraid that the cryptocurrency miners would be less likely to buy from NVIDIA and AMD. BitMain surpassed performance at a lower cost, and Ethereum was the last major encryption method to be unaffected by ASICs.
Still, US chip makers are not worried. NVIDIA's 32-year-old senior vice president, AMD, has convinced us that personal computers, games and data centers will keep their business with or without cryptocurrencies.
However, logic applies in two ways. When almost every imaginable electronic device is driven by a graphics chip, it is possible to meet outside of cryptocurrencies in BitMain, and China's geopolitical incentives are stronger than ever.
Bitmain seems to know this fact completely. The Investor's Guide explains the ambition of the Chinese government to enter other technology areas to cope with ICO, cryptocurrencies and mining bans and to grow the company with partially artificial intelligence supercomputer titan.
The in-house artificial intelligence division is expected to account for 40% of sales over the next five years. Like BM1680 processor-based tensor computing cards, deep learning accelerators and intelligent server devices, Bitmain said that neural machine learning methods will similarly increase the processing capacity of graphics chips for cryptographic and non-cryptographic applications.
The Bitmain assertion test shows that AI chips stack up against the computing power found in Google's AI products.
Bitmain works in the fields of R & D, platform architecture, algorithm development, software and hardware development. "Bitmain quickly developed new and existing research by academic institutions and technology companies to better artificially engineer intelligent software and hardware. It is beyond the scope of the cryptocurrency mining tool.
Right now, the first move is robotics: the acquisition of Luobetec, a smart robot company, and the production of Luo Xiaodou robot pets.
Jihan Wu image through CoinDesk archive
CoinDesk, a leader in block-chain news, is a media outlet that pursues the highest standards of journalism and adheres to strict editorial policies. CoinDesk is an independent operating subsidiary of the Digital Currency Group, which invests in cryptocurrencies and block-chain startups.
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