China’s biggest bitcoin mining company Bitmain Technologies is hoping to raise up to $1bn in pre-IPO private funding even as the falling value of bitcoin has hit demand for its products and brought down prices.
The Beijing-based company, which is responsible for mining more than half the world’s bitcoins, is also considering an initial public offering, according to lawyers and bankers, and hopes to be worth $30bn-$40bn in three years. Two smaller competitors have already filed to list in Hong Kong. Bitmain declined to comment.
According to its presentation to investors, seen by the Financial Times, Bitmain is now valued at $14bn and had revenues of $2.5bn last year and net profits of nearly half that amount. In the first quarter of this year, revenues — more than 90 per cent of which come from selling mining computers — were $1.86bn.