Full-Service Blockchain Firm Bitfury Explores IPO Options in Europe

  • Full-service blockchain firm, Bitfury, may be considering doing an initial public offering (IPO), according to anonymous sources. 
  • Bitfury may seek a valuation of around $3-$5 billion, however, these initial estimates are subject to change.

Bitfury, a digital currency mining and “full-service” blockchain technology company, is reportedly exploring strategic business ideas, or options such as launching its own initial public offering (IPO).

Should this materialize, it could potentially be Europe’s first major listing in the nascent crypto and blockchain industry, as per inside sources.

In order to inform investors about its operations, Bitfury has reportedly contacted large investment banks throughout the world as it aims to introduce its public offering in London, Hong Kong, and Amsterdam by early 2019.

Bitfury Might "Raise Debt Financing", "Sell Majority Stake" 

The Bitfury Group, which “develops and delivers” software and hardware products for businesses and governments to “move assets” via blockchain networks, will be looking into various different options for its IPO, and may “decide to raise debt financing or sell a majority stake”, Bloomberg reported.

At present, Bitfury has not made any “final decisions”, but if the company does go public within the next couple of years, then it may try to seek valuation between $3-$5 billion. However, these numbers are only initial estimates and are subject to change - based on future market and industry conditions.

Similar to how analysts, researchers, and investment bankers expressed concerns regarding Bitmain’s IPO, the current lack of clarity regarding cryptocurrency regulations and their high volatility nature may also be issues that could keep financial institutions away from advising on Bitfury’s offering.

Instutional Investors Enter The Crypto Space, Bitmain IPO

Despite having their reservations, large institutions such as Fidelity Investments are now planning to enter the crypto space. Fidelity, which manages over $7.2 trillion in clients’ assets, revealed in mid-October that it would be launching a cryptocurrency custody brokerage solution specifically for institutional clients.

Meanwhile, giant Wall Street investment bank, Goldman Sachs, and billionaire Michael Novogratz’s venture capital fund, Galaxy Digital Ventures, announced on October 18th that they would be investing in crypto asset custody solution solution service, BitGo Holdings.

Notably, Bitfury’s revenue is significantly lower than that of Bitmain Technologies, which filed for an IPO with the Stock Exchange of Hong Kong (SEHK) in September. Founded in 2011, Bitfury recorded revenue of around $450 million during the time period between March 2017 to March 2018.

One of Bitfury’s most sought-after services recently is its high-performance machines that are kept cool by submerging them in a type of non-conductive liquid, a project currently underway at a data center and plant located in the Republic of Georgia.