Cryptocurrency Mining Giant Bitmain Officially Files For An IPO In Hong Kong
Bitmain, the Beijing-based cryptocurrency mining giant, has officially filed an application to go public on the Hong Kong Stock Exchange (HKEX).
Published on Wednesday, Bitmain's long-awaited initial public offering (IPO) prospectus follows various news reports that the mining giant has been mulling a Hong Kong listing for a multi-billion dollar public fundraising. The process has not been without its share of controversy, with major firms denying their role in a pre-IPO funding phase in a development that cast doubt on the company.
As the application is still in draft form and pending further listing hearings from the HKEX, it remains unclear how much the firm will be valued at eventually. As shown in the posted application, a number of details remain redacted, including the number of shares that will be offered and the timetable for the public offering.
Still, the prospectus gives insight into Bitmain's financial standing as well as the company's structure and inner workings.
According to the filing, the firm made a total of $2,517,719,000 in revenue in 2017, a major increase from the $277,612,000 in revenue it generated over the course of 2016. As of June 30 this year, Bitmain has made $2,845,467,000 in revenue.
Of that revenue, Bitmain grossed profits of $1,212,750,000 last year and $1,030,151,000 for the first half of 2018, up from $151,351,000 over 2016. Before taxes, the numbers were $137,750,000 in 2016, $897,376,000 in 2017 and $907,792,000 for the first half of 2018.
CoinDesk previously reported Bitmain's profits have surged significantly year-on-year, which jumped from $100 million in 2016 to $1.1 billion in 2017 and $1.1 billion in Q1 2018, based on documents obtained by CoinDesk.
The prospectus states that, after adjusting for costs and expenses, Bitmain's net profits were $48.6 million in 2015, $113.5 million in 2016, $952.5 million in 2017 and $952.1 million as of Q2 2018.
Bitmain also reported an $886.9 million balance of cryptocurrencies denominated in bitcoin,
bitcoin cash, ether, litecoin and dash as of June 30 after factoring in a net loss of $102.7 million over the last 6 months, more than 10 times the net loss on previous years of holdings.
This accounted for 28 percent of its total assets at the time, the document stated, but did not break down a coin-by-coin allocation.
Cryptocurrency holdings were previously valued at $56.3 million and $872.6 million, or 30 percent of assets, by the end of 2016 and 2017, respectively.