Crypto Mining Giant Bitmain Considering an IPO

Avi Rosten
  • Bitmain - the world’s leading producer of cryptocurrency mining chips - is considering an IPO
  • Talking to Bloomberg, CEO Jihan Wu indicated that a listing might be on the cards as the Chinese company looks to expand

Bitmain - the world’s leading producer of cryptocurrency mining chips - is considering an IPO.

According to the report today in Bloomberg, 32-year-old CEO Jihan Wu is pondering the idea of a listing for the Beijing-based company - which until recently had been very secretive about its value and financial plans.

Founded by Wu and Micree Zhan, the company has become incredibly profitable - recording a $2.5bn revenue last year, and has become famous for its powerful Antminer range of ASIC cryptocurrency miners (Application-Specific Integrated Circuits: chips designed specifically for crpytocurrency mining).

With Wu claiming the company to be worth $12bn, Bloomberg estimated a valuation of close to $9bn based on comparisons with other publically traded non-crypto chipmakers such as Nvidia. Although it is unclear whether investors would view a company in the crypto market in the same way - a figure in that ballpark doesn’t seem unreasonable given Bitmain’s impressive figures.

While Wu said that he had no specific intentions for a listing at the moment, the report does suggests that the CEO is warming to the idea of an IPO as the company expands its operations beyond the cryptocurrency arena. With the company pursuing ventures into artificial intelligence, he remarked:

“The challenge is advancing our technology beyond what we’ve already achieved,”

Jihan Wu

With the Chinese official position on cryptocurrencies standing in stark contrast to their recent encouragment of blockhcain technology, a move beyond the mining sector would also sit well at home.

Controlling up to 80% of the crypto mining hardware market, the company also runs some of the largest mining pools - Antpool and BTC.com.

Many within the industry have voiced concerns over the power these two mining pools exert over the bitcoin market - controlling over 40% of the market according to blockchain.info - and how this might conflict with the spirit of decentralisation that animates much of the cryptocurrency space.

 

Featured Image Credit: "Bitcoin Mining" by "Marco Verch" via Flickr; licensed under "CC BY 2.0"

Time to Be ‘Cautious or Short' Bitcoin, Says Bollinger Bands Creator

Francisco Memoria

John Bollinger, creator of the popular technical analysis tool Bollinger Bands, has tweeted out it’s time to be “cautious or short” on the price of bitcoin, after the cryptocurrency’s price dipped below $10,000 for the third time since the so-called black Thursday.

On social media, Bollinger pointed out that bitcoin’s last move p over the $10,000 mark, which came shortly after U.S. President Donald Trump finished a speech on law and order in which he vowed to take “immediate presidential action to stop the violence” and said he was “mobilizing all available federal resources — civilian and military — to stop the rioting and looting,” was a head-fake.

A head-fake, Investopedia writes, occurs when the price of a security moves in one direction initially, but then reverses its course and moves in the opposite direction. These trades occur most frequently at key breakout points – for bitcoin, a key point was the $10,000 mark.

The price of the cryptocurrency dropped suddenly after breaking its key breakout level earlier this month over a flash crash on BitMEX that saw its price dip to $8,600 before it started recovering. CryptoCompare data shows that bitcoin is now trading above $9,600, but that since the March 12 coronavirus-induced market crash it has tested the $10,000 mark three times already.

Bollinger, it’s worth noting, has a decent track record looking at cryptocurrencies. In October 2019 the analyst accurately said the price of BTC dropping to $7,300 was a head-fake, and the price of the cryptocurrency then moved up in a significant rally to $9,500.

In April of this year, Bollinger tweeted out BTC was “moving into squeeze territory,” shortly before the cryptocurrency’s price started surging. He was, however, caught off guard by the Black Thursday sell-off, as were most investors and analysts.

It’s worth noting many in the cryptocurrency space are still bullish long-term. As reported early BTC developer Adam Back – who some believe could be Bitcoin creator Satoshi Nakamoto – has said he believes the price of the cryptocurrency will hit $300,000.

Featured image via Unsplash.