According to today’s Caixin News, BitMain has completed Series B financing with a valuation of approximately US$12 billion. The news further said that this round of investors includes Sequoia China, US hedge fund Coatue (concentrated investment TMT industry in recent years), EDBI (Singapore state-owned emerging market investment fund).
According to public information, BitMain received a $50 million Series A investment in September 2017, with investment institutions being Sequoia Capital and IDG Capital. What remains unchanged is that the B round of financing is still led by Sequoia.
The data shows that the number of miners produced by BitMain, the cost of purchasing components, and the price of bitcoin since 2017 are expected to reach a profit of $30 million per month, close to 200 million yuan. Wu Jihan, the founder of BitMain, also said in an interview with the US media in August last year that Bitcoin is considering an initial public offering (IPO), and its valuation should be at least “billions of dollars”. In addition, the company plans to invest in mining facilities in the United States and transform production of artificial intelligence chips. The media also pointed out that Bitmain is undergoing pre-IPO financing and will be listed in Hong Kong in the future.
Golden Finance interviewed Bitmain on the specific situation of B-round financing and future development strategy. Bitumin said that it did not respond to this matter.
Beijing-based Bitmain was founded in 2013 by Wu Jihan and Jenke Group and has grown to become one of the world’s leading bitcoin mining companies. In the bitcoin industry, Wu Jihan is also a widely watched person.
According to estimates by Bernstein analysts, Bitcoin dominates the bitcoin mining industry. Based on a conservative estimate of 75% gross margin and 65% operating margin, analysts believe that Bitco’s operating profit last year was $3 billion to $4 billion. Bernstein’s US semiconductor industry research team estimates that NVIDIA’s operating profit for the same period was $3 billion.
It is undeniable that the cryptocurrency such as Bitcoin last year’s hot tropical digital currency mining industry has grown rapidly, and the performance of the three major mining giants including Bitcoin has also skyrocketed. Recently, the IPOs of the three major mining giants have also attracted many attentions in the market. The industry has different opinions. The judgment of competing for market share is there. They are worried about the prospect of the mining machine market and the judgment of eager to transform AI chips. However, for the time being, mining as a strong cyclical industry, if it can successfully go public, has a good financing channel, in the current bear market will be a good amplification of capital advantages.