Bitmain Records $1.1 Billion In Q1 2018 Profits, Plans To Launch IPO

  •  Chinese mining company Bitmain’s profits reportedly totaled $1.1 billion for Q1 2018.
  • Bitmain may be valued at $14 billion, up 16.6% from the previous report.
  • The firm plans to launch an IPO “very soon” in Hong Kong.

Bitmain Technologies, a company that manages the world’s largest cryptocurrency mining operation, recently disclosed its plans to hold an initial public offering (IPO) in Hong Kong. The Chinese mining giant may also reportedly consider conducting its IPO in another market that supports issuing USD-denominated shares.

At present, Bitmain has not provided an official launch date for its IPO, but inside sources state that the company “plans to file for an IPO very soon.”

Notably, the mining firm’s IPO could potentially give early-stage investors such as IDG Capital and Sequoia Capital an option to cash out their investments. This development is quite significant since inside sources have revealed that the crypto mining conglomerate is raising additional funds, after its $400 million investment round in June.Based on Bitmain’s current financial data, the latest funding round may increase the mining giant’s valuation to about $14 billion, which would equate to 10 to 11x greater earnings, according to an email shared by sources working closely with the company.

Bitmain May Earn $2-3 Billion In 2018 Profits

As Crypto Globe reported, Bitmain had recently been valued at $12 billion, however, these updated financial figures indicate a 16.6% increase in the firm’s valuation. Moreover, the email mentions that Bitmain’s operations were audited by KPMG, a leading multinational professional services company.

According to  the audit results, the crypto mining company has earned a profit of $1.1 billion during Q1 2018. The email also states that Bitmain’s total profits for the year 2018 could be at least around $2-3 billion.

Interestingly, Bitmain’s IPO plans have come at a time when the Bitminer Factory, a large crypto mining operation powered by renewable energy, revealed that its initial coin offering (ICO) has already raised $2 million, after being launched on July 21st.

Bitminer Factory’s official medium post further notes that its looking to expand its operations to Herzegovina, Bosnia. The company also stated it’s currently testing IBM’s Power9 processor, in addition to its artificial intelligence and machine learning technology.

These tests are a part of Bitmain Factory’s larger effort to develop a way to develop “a product that can optimize a server farm dedicated to cryptocurrency mining.”

Kraken OTC Head Says It’s Too Early to Call Bitcoin a 'Safe Haven' Asset

Michael LaVere
  • Kraken head of OTC trading Nelson Minier says it's too early to call bitcoin a "safe haven" asset.
  • Compares the current atmosphere of crypto trading to how Wall Street used to be. 

Nelson Minier, head of over-the-counter (OTC) trading at crypto exchange Kraken, says that it is too early to call bitcoin a “safe haven” asset, despite the cryptocurrency gaining popularity in that regard. 

Too Early for Save Haven Status

In an interview with Nasdaq TradeTalks, Minier compared the current state of bitcoin and crypto-assets trading to how Wall Street used to operate in the past. 

According to Minier, 

Wall Street ain't what it used to be. The first 15 years I was on Wall Street, it was fun. I was very fortunate. I started in the CDS market which feels a lot like crypto. Here you have a lot of financial innovation, a lot of trading. It feels very much like that...there's a lot of energy and enthusiasm about this progress and where it's going.

Bitcoin has been gaining popularity as a so-called “safe haven” asset. According to the growing belief among analysts and investors, BTC is an attractive alternative to fiat and the traditional stock markets as a hedge against economic downturn. 

However, Minier believes it’s too early to label bitcoin as a safe haven, given the high price volatility. 

He continued, 

So, I’m not so sure that it’s a safe haven asset yet, but I do think that it’s starting to act like one. I think that people are starting to portfolio manage, are starting to come in slowly. And when the market is getting shaky you saw Bitcoin rise, I mean, you wouldn’t see that before, it was trading like a risky asset.

Despite calling bitcoin's safe haven status premature, Minier admitted that “we're heading that way for sure.”