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Bitmain First Quarter Profits North of $1.2 Billion According to Leaked Data


A leak in financial data has provided some startling revelations about the cryptocurrency mining giant Bitmain. According to the data, Bitmain’s profits within just the first quarter of 2018 have gone above and beyond a billion dollars. The data has also given some hints about the details of the upcoming IPO for Bitmain.
The data was apparently obtained through an e-mail delivered to Fortune Term Sheet, a media outlet. Apparently, a source that is very close to the company Bitmain sent them this e-mail. This e-mail revealed the mind-boggling billion dollar profit in just the Q1 for the Beijing-based company.
Initial Public Offering by Bitmain
The data obtained by Term Sheet has not yet been published but allegedly, it reveals data about Bitmain being in a fundraising round. According to them, the Beijing-based outfit is trying to get a $400 million worth round from June of 2018. This is apparently going to help them out with an initial public offering (IPO) set to launch later in the year.
The regional news source in China called Toutiao had reported some concrete evidence of the second funding round. This report came to light on the 16th of July in 2018. This increased speculations within the larger cryptocurrency community about a potential Bitmain IPO.
Jihan Wu talked about the possibility of a Bitmain IPO back in June when he was talking to Fortune. Jihan Wu is one of the co-founders of Bitmain Technologies Ltd. He said that the cryptocurrency mining platform is open to possibilities of a listing. It could be in Hong Kong or even in an overseas market. In that case, it would want to be listed in a market which has US dollar denominated shares. These shares have to provide early investors like IDG Capital and Sequoia Capital an exit opportunity.
He went on further to say that the main challenge for the company is to advance the technology further than what’s already been reached. The Beijing-based company is trying its best to stay ahead of the competition and maintain market advantage.
The Data obtained by Term Sheet supposedly also reveals another funding initiative for Bitmain. Apparently, it will see the company be valued at roughly $14 billion US Dollars. This means that the earnings are going to increase eleven-fold.
With the success of a funding round, the cryptocurrency mining company will be able to see an increase of 16 percent in its value in comparison to a recent valuation putting it at $12 billion US Dollars.
Hashing Monopoly by Bitmain Causing Crypto Community to Worry
Bitmain is an example of a highly-successful cryptocurrency-based venture. That being said, not everybody in the cryptocurrency community is excited to see this rise in mining operations. The co-founder of Ethereum, the famed Vitalik Buterin, has recently taken a few quips at the cryptocurrency mining giant. He has also made note of the fact that the company, along with similar ones in the landscape, have control over more than half of Bitcoin’s hashing power.
With the company seeing such immense profits, it seems unlikely that they will let go of such a primary revenue generation source.
The company has increased employment in Israel three-fold and even acquired 20,000 square feet in San Jose.
Hashing Power Surges Forward
With the impending Initial Public Offering and the fast expansion, there is also a massive surge in hashing power for Bitcoin. The data from blockchain.com has shown that there was a massive surge, causing a rise from 36 million TH/s to 50 million TH/s on the 28th of June within the span of a single day. This has sent Bitcoin’s hashrates skyrocketing to record highs.
High hashrates are considered an indicator of what could possibly be a bull run for the cryptocurrency landscape. This sends more and more miners dedicating their hardware so that they can contribute to what they predict will be a mining venture full of profit.