After successfully establishing a presence in other sectors, Bitmain is planning for a 100 billion Initial Public Offering (IPO). With this IPO, the Chinese company will become one of the valuable companies in the world.
The founder of Bitmain, Jihan Wu said the company is planning to grow the business beyond the crypto push and hence the need for IPO.
Bitmain Reports Revenues of $2.3 Billion in 2017
Bitmain has mobilized funds of $2.3 billion in the year 2017 through the sale of mining rigs equipment. The company enjoys a monopoly in this domain. Other large companies that have a presence are Bitfury, Canaan, Advanced Micro Devices, Inc. (NASDAQ:AMD), and NVIDIA Corporation (NASDAQ:NVDA).
Bitmain commands a market share of more than 80% in the cryptocurrency mining sector as per the details released by Sanford C. Bernstein & Co in February 2018. Its operating profit is almost on par with NVIDIA.
Micree Zhan, the co-founder, along with Jihan Wu owns 60% stake in the company. Their combined net-worth is more than $1.8 billion.
The net-worth of the founders will increase to $5.3 billion and the valuation of the company will reach $8.8 billion following the successful subscription of the proposed IPO. However, the proposed move creates a significant achievement and could attract the attention of the government to introduce a legislation.
Bitmain to foray into AI
Bitmain is also entering the artificial intelligence (AI) sector. It will further strengthen the push of the company for IPO because well defined regulations outside the cryptocurrencies and the blockchain technologies.
As per the information revealed by BTC Manager during last month, its rival Canaan has already filed for IPO in Hong Kong to raise funds worth $1 billion. However, the revenues of Bitmain is almost 12 times that of Canaan.
However, the cryptocurrency pursuits are creating resistance to Bitmain because they feel that centralized role of the company in the ecosystem is detrimental to digital currencies including Bitcoin (BTC).
Bitcoin to Consume 0.5% of the energy worldwide by end 2018
According to the peer research, Bitcoin mining is expected to consume 0.5% of the power produced across the world by the end of 2018. The present energy consumption by the BTC network is estimated at 2.55 GW.