Bitmain shows no signs of slowing down this year. Earlier this week, the mining behemoth filed an official application to go public on the Hong Kong Stock Exchange (HKEX). The prospectus offers some insight on how far the company can reach.
This move didn’t go without issues as the highly-anticipated initial public offering (IPO) got its fair share of controversy. Many major firms denied their involvement in the pre-IPO funding phase. This development further increased speculation and shed negative light on the company.
Despite this small predicament, everything seems to be going well for Bitmain. The company recently opened a huge 20 000 square feet office in San Jose, CA. The application to HKEX is still in its draft form, pending further hearings. At this time, it’s impossible to determine on the value, which will be placed on the mining giant. The application has many redacted details, which include the shares that will be offered and the timetable.
The prospectus does shed some light into the company’s current financial standing, structure and inner workings. The filing notes that the company made a total of $2 517 719 000 in revenue for 2017. This is a staggering increase from 2016 when the revenue was $277 612 000. By the latest data, the company has made $2 845 467 000 this year for the first six months.
Of the above mentioned revenue, the company’s total profits amounted to $1 212 750 000 in 2017. The first 6 months of 2018 gave Bitmain an estimated profit of $1 030 151 000. The company also reported its balance of $886.9 million cryptocurrencies with a prevalence of bitcoin. The other coins, which the company held were ether, litecoin and dash.
In 2015 Bitmain saw the start of a huge increase in hardware sales. Those sales continue to generate profits to this day. 2015 saw Bitmain generate about $107 million in profit from ASIC chip sales. The first 6 months of 2018 saw about $2.6 billion in profit. By projections, the 2018 total earnings will more than double the $2.26 billion generated in 2017.
The data shown by the prospectus can make many other companies envious
With ASIC chips becoming more and more prevalent, Bitmain sold 230 000 miners in 2015. 2016 saw 260 00 miners sold, with 1.62 million in 2017 and 2.56 million for the first half of 2018. The majority of the funds, which the company received came in the form of crypto.
Bitmain has also been buying land in China and around the world to set up mining farms. The company also has rented 15 200 square meters of land across 5 different locations. The total amount of properties is 50 and amounts to 99 700 square meters according to the prospectus. There are also mining farms in Canada and the United States, which are projected to open in the beginning of 2019.
The prospectus also shares information about the inner workings of the firm. Information like the company employing 2 594 people, 840 of which were assigned to research, 701 to product management, 535 to farm management, 235 to administration, 209 to customer service and 74 to sales and marketing.
Additionally, the prospectus lists the companies who cooperated and adviced on the IPO deal. Among the included companies are Hong Kong Securities Limited, China International Capital Corporation and Commerce and Finance Law Offices on the finance side of the IPO.
Bitmain also owns a 3% stake in the Opera browser after investing $50 million in Opera Limited. $1 million was given to Digital Mercantile Ltd. for a 5% stake as well.
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