Bitmain reaches $15 Billion Market Valuation

Karan Balwani

August 9, 2018 10:14 am

Cryptocurrency News

Bitmain reaches $15 Billion Market Valuation
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Bitmain, the Bitcoin mining giant has reached a market value of $15 billion after it’s pre-Initial Public Offering (IPO) closed on August 4, 2018.

Based on the report by QQ News, the company got financial backing from high-profile investors. This deal closed on Saturday. The company received investment support from Tencent, the Chinese tech conglomerate and Softbank, Japan’s tech giant.

Notably, Softbank also holds a 15 percent stake in Uber, making it the app’s largest shareholder.

Tencent, on the other hand, is known for its social media platform WeChat. WeChat has more than 1 billion global users. The app outperformed Facebook’s market cap by $72 billion in March 2018.

Bitmain also plans to launch its own IPO on the Hong Kong Stock Exchange in September 2018 at an estimated valuation at $30 billion.

The company held up to 80 percent of the worldwide market for Bitcoin mining hardware and posted a profit range of $3-$4 billion in operating revenue. This figure was much higher than Nvidia, the American GPU maker.

Another crypto market giant from China, Canaan Creative is planning an IPO launch on the Hong Kong Stock Exchange as well.

Furthermore, Bitmain revealed its plans to construct a blockchain data center and mining facility in Texas. This $500 million project is a part of the company’s expansion strategy in the United States.

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