Bitmain Valued at $12B, Become The Biggest Crypto Company Post Series B Funding
Cryptocurrency mining hardware manufacturer Bitmain is now valued at $12 billion, following the recently concluded Series B funding which raised $400 million for one of the biggest crypto mining companies in the world.
As reported by a local Chinese media outlet, Caixin, Bitmain’s recent funding round was participated mostly by its primary investors: Sequoia Capital’s subsidiary, Sequoia China; U.S.-based Coatue hedge fund; and Singapore governmental investment fund EDBI. Sequoia Capital, a long time backer of Bitmain, also participated in the crypto mining company’s Series A funding in July 2017 alongside IDG Capital.
Back in May, the company led a $110 million financing round for Circle, an influential cryptocurrency company with backing from Goldman Sachs and others. In an official announcement, Circle said Bitmain’s stake in the company will allow it to expand critical infrastructure needed to power the crypto economy:
“Bitmain Co-founder and CEO Jihan Wu is well known for espousing a vision similar to ours regarding the creation and adoption of a new global economy powered by cryptographic assets, distributed contracts, and open source blockchain technology. We are excited to be working directly with Bitmain on realizing our shared vision.”
Bitmain is considered one of China’s ‘big three’ crypto mining manufacturers, and its sphere of influence is growing by the day. The company controls the lion’s share of bitcoin’s hashrate through mining pools BTC.com and Antpool. As reported last month, the company is coming dangerously close to controlling 51% of the bitcoin hashrate, a mark that would theoretically allow it to carry out a 51% attack against the network. It has also been estimated that Bitmain accounts for up to 80% of the market for bitcoin mining hardware.
There were also reports that Bitmain was planning to conduct an IPO in the coming days. According to an inside source, the company is most likely to conduct its IPO in Hong Kong. If Bitmain succeeds in conducting its IPO, it will join the ranks of Ebang Communication and Canaan Creative who applied to hold their IPOs with the Hong Kong Stock Exchange.
In terms of profitability, Bitmain dwarfs its competitors. The company reported $4 billion in earnings last year, leapfrogging tech powerhouse Nvidia, which took 24 years to secure $3 billion in profit.
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