Bitmain Technologies Files IPO with the Stock Exchange of Hong Kong (SEHK)

Omar Faridi
  • Bitmain Technologies has filed an application for its IPO with the Stock Exchange of Hong Kong (SEHK).
  • Bitmain has released a detailed prospectus which shares the firm's profit and loss statements from FY 2016, 2017, and first half of 2018.

Beijing-based Bitmain Technologies has reportedly filed an application to launch its highly-anticipated Initial Public Offering (IPO) on the Stock Exchange of Hong Kong Limited (SEHK) - one of the largest in Asia, with a market capitalization of approximately $4 trillion.

Released this week, Bitmain’s IPO prospectus does not specify the number of shares it will offer nor include a schedule (or timeline) for the public offer. However, the prospectus does reveal the mining hardware manufacturer’s profit and revenue for financial year (FY) 2016, 2017, and first half of 2018.

Bitmain's Profit & Revenue Statements

The financial figures are as follows:

Revenue:

  • $2,845,467,000 (as of June 30, 2018)
  • $2,517,719,000 (in FY 2017)
  • $277,612,000 (in FY 2016)

Profit:

  • $907,792,000 (almost $1 billion Q1/Q2 2018)
  • $1,212,750,000 (in FY 2017)
  • $151,351,000 (in FY 2016)

Commenting on its “strengths”, Bitmain noted in its prospectus (in which much of the information has been redacted) that there are six factors which “differentiate” the leading crypto mining equipment manufacturer from its competitors. They include:

  • “Leader in the global ASIC industry;”
  • “Pioneer in the thriving blockchain ecosystem;”
  • “Strong contender in the AI chip industry;”
  • “Outstanding research and development capabilities;”
  • “Close partnership with leading supply chain partners;” and
  • “Visionary management team believing in AI and blockchain technology.”

In line with these core strength areas, Bitmain Technologies plans to further invest in its ongoing research and development (R&D) efforts, “advance [its] presence” in the crypto industry, and focus on the “commercial application” of AI technologies.

IPO Underwriters

Underwriting Bitmain’s IPO are Hong Kong Securities Limited, Commerce and Finance Law Offices, KPMG, China International Capital Corporation, Hong Kong-based Maples and Calder, and Frost & Sullivan.

The prospectus clarifies: 

As of the Latest Practicable Date, none of the experts named above has any shareholding in any member of our Group or the right (whether legally enfroceable[sic] or not) to subscribe for, or to nominate persons to subscribe for securities ... in any member of our Group.

Bitmain IPO Prospectus

Information pertaining to Bitmain’s investments was included in the prospectus. Notably, Bitmain Technologies recently acquired a 3 percent stake in Opera through a $50 million investment in Opera Limited.

Blockchain Wallet Integrates BitPay Support for User-Friendly Transactions

  • Blockchain Wallet announces the integration of BitPay into their existing service. 
  • Emphasis on allowing for "user-friendly" transactions and payments. 

Popular cryptocurrency firm Blockchain.com, which operates the Blockchjain wallet, has announced integration of payment processor BitPay

Blockchain Wallet Adds BitPay Support

In an update, Blockchain Wallet confirmed its new partnership with BitPay, which will allow for the direct spending of user bitcoin in an effort to increase the ease of crypto-based payments.

The press release states that BitPay has been “seamlessly” integrated into the existing Blockchain Wallet framework, which clients can use to make payments directly from their application. 

According to the announcement,

As the largest global crypto payments provider, BitPay and has processed more than $2.8 billion from merchants and B2B customers since 2011.

The press release continues, 

We’re excited to see this new addition connect our Wallet users to the world of merchants that accept Bitcoin (and soon other cryptos) as a payment method — one of the key ways to interact with and grow the digital asset ecosystem.

The emphasis on payments shows the direction that Blockchain Wallet imagines for the future of crypto. While the platform has created a secure cryptocurrency wallet for users to retain simultaneous control over their funds and private keys, user-friendly transactions and spending has continued to be a work in progress. 

BitPay has emerged as one of the more successful payment platforms in crypto, with a focus on establishing a relationship with merchants to accept bitcoin. The partnership with Blockchain Wallet, with its reported 41 million userbase, could go a long way in spurring greater use for bitcoin outside of a store of value asset or token for price speculation.