Wednesday, 27 May 2020

Bitmain Is Shining even as Bitcoin is Low

We live in interesting times, Satoshi Nakamoto, if you are listening. The world’s largest maker of bitcoin mining chips is hoping to raise $18 billion in what could be one of the largest IPOs in history, it was reported this week.

Crypto Unicorn on Steroids

Bitmain will file for IPO in Hong Kong by September and it’s going to be massive! The trajectory here is outstanding: Bitmain’s revenue was at around $2.5 billion for 2017 and at around $300 million for 2016. Satoshi Nakamoto, take heed.

I just wrote about Bytedance. Well, this one is also Chinese based, in fact in the same town. Bitmain Technologies Ltd., or Bitmain, is a privately owned company headquartered in Beijing.

It’s building a $500 million mining farm in Texas. It’s targeting $10 Billion in revenue for 2018. Move over, Coinbase and Binance. Bitmain is hitting the mainstream.

Bitmain’s founder is cryptocurrency billionaire Jihan Wu. Surfaced documents suggest that Bitmain has accumulated nearly $1 billion worth of Bitcoin Cash. This means essentially Bitmain owns upwards of 5 percent of the 17.3 million BCH currently in circulation and 12.5 percent of the 8.4 million BCH that have been moved since the Aug.

Remember this: even in a bear market for Bitcoin, Bitmain is now on pace to become the first blockchain-focused company to achieve $10 billion in annual revenue.

If you compare this with the likes of Coinbase and Nvidia you get an idea of the scale of this startup. Coinbase earned revenue of only $1 billion in 2017, while California-based Nvidia generated a revenue of $9.7 billion in 2017. Nvidia reported a revenue of $3.21 billion for the first quarter of FY18 (February-April). Bitmain is showing just how Chinese blockchain companies can flex their crypto wallets, eh!

Bitmain was founded in 2013 and is now the entire world’s dominant producer of cryptocurrency mining chips known as ASICs, or Application-Specific Integrated Circuit. This means when the crypto market cap goes back up, this is the one company that will literally gain the most!

Beijing Double-Headed Phoenix

Who told you crypto was dead? If the company raised $18 billion at a market capitalization of $40 to $50 billion, that could make it the largest IPO in history. Beijing, with Bytedance and Bitmain, is showing a double-headed phoenix for the future of crypto and app media.

I’ve always talked about an emerging Chinese tech dynasty but now we are starting to see who some of the emerging new players will be. As a futurist, I’ve become bull on China’s ability to scale companies that will have a global impact for years to come.

Bitcoin mining machines are indeed part of the crypto central nervous system. Check out this video by Bloomberg. Bitmain’s IPO story was first broken by Coindesk on August 13th. Bitmain is also a major investor in Block.One, the company around EOS’s epic $4 billion ICO.

Here’s where things get interesting. Bitmain might also be implicated in the future of AI. It seems the company has expressed an interest in developing custom chips to compute in the field of artificial intelligence, called application-specific integrated circuits. The IPO should help fund that project.

Bitmain helps the BTC world go around.

Softbank Group and Tencent Music are also epic upcoming IPOs to watch, largely expected to top Alibaba and Spotify’s massive IPOs. As for Bitmain’s pre-IPO funding, Tencent Holdings, Ltd., Softbank Group, China National Gold Group as well as another unnamed wealth management group led the $15 billion round. As Bitcoin rises again, then, Tencent is also a big winner.

The Beijing Phoenix are highly disruptive dual firms; both Bitmain and Bytedance are completely dominating their respective fields.

By Michael K Spencer
source: medium
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