Leaked financial data has allegedly revealed that cryptocurrency mining juggernaut Bitmain captured a monolithic $1.2 billion USD in profit for the first quarter of 2018, as well as hinting toward details of the upcoming Bitmain IPO.
Announced by Fortune’s Term Sheet, the data — purportedly obtained via an email delivered to the media outlet by a source “close to the company” — reveals a staggering billion-dollar net profit obtained by the Beijing-based crypto mining platform.
Bitmain to Launch IPO
Term Sheet’s as-yet-unpublished data allegedly reveals that Bitmain is currently in a fundraising round, seeking to boost a $400 million round from early June 2018 aimed at assisting in a public offering set for later this year.
Chinese regional news resource Toutiao initially reported concrete evidence of the second round of funding on July 16, 2018, catalyzing extensive speculation within the cryptocurrency ecosystem regarding the potential of a Bitmain IPO.
Bitmain Technologies Ltd Co-Founder Jihan Wu noted the possibility of a Bitmain IPO in an interview with Fortune in June. He stated that the mining giant is open to a listing in Hong Kong, or in an overseas market with US dollar-denominated shares that provides early investors such as Sequoia Capital and IDG capital an exit opportunity:
“The challenge is advancing our technology beyond what we’ve already achieved … Bitmain is trying very hard to maintain its advantage”
Term Sheet’s data purportedly reveals a new funding initiative that would see Bitmain valued at roughly $14 billion USD, implying a potential 10 to 11x earnings multiple. The successful execution of the funding round would see the mining platform gain roughly 16% in value over a recent $12 billion dollar valuation.
Conservative estimates of the privately held Chinese firms’ 2017 profits place the mining organization at $3 to $5 billion in the black for last year. Term Sheet’s email data, however, allegedly demonstrates that Bitmain anticipates a conservative estimate of $2 to $3 billion in profits over the next year.
Bitmain Hashing Monopoly Draws Cryptocurrency Community Concern
Bitmain may be a stellar example of a highly successful cryptocurrency-based venture, but not all market participants are excited by the rapid rise of mining operations. Ethereum co-founder Vitalik Buterin recently targeted Bitmain in a series of open questions and notes that Bitmain and other associated pools are close to controlling over 51% of the total Bitcoin hashing power.
With such dramatic profits, however, it’s unlikely that Bitmain plans on eliminating its main source of income in the near future. Having recently established a 20,000 square foot presence in San Jose, the Chinese crypto mining venture has Silicon Valley set firmly in its sights. In addition to capturing territory in the US, Bitmain has also tripled employment in Israel, expanding its existing research and development center.
Wu has outlined a far-reaching plan for the future of the company in an interview with Chinese media, announcing that Bitmain will expand into Bitcoin mining hardware, as well as developing artificial intelligence solutions.
Bitcoin Hashing Power Surges Ahead
Bitmain’s rapid expansion and impending IPO coincides with an all-time high in total Bitcoin hashing power, with data from Blockchain.com demonstrating a surge from 36 million TH/s on July 28 to over 50 million TH/s within 24 hours catapulting the Bitcoin blockchain to never-before-seen hashrates.
High hashrates are widely considered a lagging indicator of a potential bull run within the cryptocurrency ecosystem, representing more miners directing their hardware to what they anticipate to be a profitable mining venture.
The post Leaked Data Allegedly Reveals $1.2 Billion Bitmain Q1 Profits, Bitcoin Hashing Power at All Time High appeared first on CryptoSlate.
Original Post: Leaked Data Allegedly Reveals .2 Billion Bitmain Q1 Profits, Bitcoin Hashing Power at All Time High