Bitmain Announces IPO At Last
The firm also operates a number of mining centers within Asia.
What to Expect Ahead of Bitmain’s IPO
Bitmain has presented its IPO in Hong Kong. Bitmain is the leading mining device manufacturer across the world. Since inception, Bitmain has dominated the mining scene.
The firm filed the IPO at the stock exchange but failed to reveal it’s target at the close of the offering. Market experts have weighed in on the offer stating that Bitmain success represents the high demand for cryptos by clients within Hong Kong.
With the IPO, Bitmain has issued a clear procedure for purchasing shares. According to authorized documents, Bitmain has more than 74.5% market cap in terms of mining hardware. The firm holds the largest share of the market. The company is leading in regards to sales recorded last year. It provides numerous mining hardware with installed ASIC chips. The chips are supplied by Antminer brand.
The dominance has come with a concrete purchase point for clients. From the year 2015, the firm has been recording a 328.2% in revenue on an annual basis. In 2015, its revenue stood at $137.3 million while last year it was at an impressive $2.5 billion.
Come 2018, the firm’s profit margins were doubled under Nvidia. The leading graphics manufacturer recorded over $1.1 billion in revenue. The figures represented double growth compared to what was attained in the first quarter. By the end of 2018, Bitmain is estimated to earn about $2 to $3 billion.
The profit recorded in the first quarter is impressive. It is key to note that Bitmain’s conglomerate brought in $2.5 billion last year. An analysis of 2018’s first quarter, the firm almost garnered 50% of profits obtained during the past year.
Bitmain’s Diverse Revenue Sources
Apart from producing mining devices, Bitmain also has an interest in the mining business. The firm has established about 11 mining points within China. Additionally, it has BTC.com and Antpool as its mining bases. The latest centre was opened in PRC. All the centres have a storage capacity of about 200, 000 in hardware. The two pools are responsible for 37.1% of the entire hash rate involving bitcoin. The figures represent over a third of power need by bitcoin.
However, Bitmain’s market dominance might not stand for long. A number of studies have indicated that the firm is facing serious competition, something that has lowered its profits pool. It, therefore, means that the firm might have turned to the IPO as a means of ensuring that it reaps high profits.