Bitmain Acquires Tencent and Softbank for Pre-IPO Investment
Bitmain, one of the world’s leading cryptocurrency mining hardware companies has just cemented its deal with the biggest tech company in China, Tencent, in addition to Softbank, the largest shareholder of Uber assets as two significant contributors to its upcoming pre-initial product offerings round. The mining company continues drawing in more attention from top-tier companies and investors prior to its IPO on the HKSE later in 2018.
Billion Dollar Deal
As per reports earlier this year, Bitmain was overseeing the closing of a billion-dollar funding round expected to accumulate to $15B in value following its conclusion. According to another local publication, the company had the initial pre-IPO raising on the 4th of August with the addition of Tencent, a conglomerate exceeding even Facebook’s entire market cap as well as Softbank in Japan, another industrial giant involved in several tech-related company endeavors and owning the most shares at Uber.
The new support from both additional investors comes after Bitmain managed to gather around $1.1B in profit only within the first quarter of this year. As with a similar report of Nvidia gathering just over $1.1B as well, it’s clearly evident why Bitmain is drawing so much attention to itself in a positive way. In June of this year, the company achieved a $12B valuation prior to the conclusion of its financing round which resulted in another $400M.
Additional reports have stated that Bitmain is already undergoing the necessary procedures to qualify for listing on the Hong Kong exchange, collaborating with CICC, the oldest investment bank in China, for its underwriting support prior to the IPO on the HKEX later this year. As local media has reported, Bitmain is reportedly expected to publicize itself by presenting a market cap from anywhere between $30B and $40B before 2019.
The company has seen incredible progress despite the heavy bans on cryptocurrency placed by China’s regulators since last year and continues gathering major success in revenue and gains during a bear-dominated crypto-market. Bitmain has also built a significant resume for itself through several significant investments in Circle, a digital currency trading company in the US, as well as the famous Opera browser. Another recently announced venture is the launch of a new digital mining company in Texas with a $500M initial budget.