Briefing: Mining giant Bitmain shifts IPO plans to the US

1 min read

Bitmain Revives IPO Plan as Bitcoin Hits One-Year High – Bloomberg

What happened: Bitmain, the world’s largest producer of mining rigs, is reviving plans for an initial public offering (IPO) as optimism around Bitcoin grows. The firm could file its listing documents with the US Securities and Exchange Commission as early as next month. The Chinese crypto mining firm is reportedly seeking to raise about $300 million to $500 million from the US offering, significantly lower than its previous Hong Kong fundraising target of $3 billion due to the volatile cryptocurrency prices.

Why it’s important: In August, the firm was valued at around $15 billion after closing a pre-IPO funding round. However, early this year, it was forced to lay off significant headcount and shuffle leadership amid a bearish cryptocurrency market. Its Hong Kong IPO application, filed in September, expired in March. The Hong Kong stock exchange is more attractive to Chinese high-tech firms since its listing reform last year, but still considers cryptocurrency companies premature. However, the recent spike in Bitcoin price, which hit a one-year high last week, has spurred optimism. Cryptocurrency meanwhile is gaining more attention as more mainstream tech companies like Facebook express interest in digital currency.