Bitmain IPO’s Come-Back: Following BItcoin’s Price Surge, Bitmain Revives IPO Plans

It has taken only three months and a Bitcoin bull run for fresh rumors of a possible initial public offering (IPO) by giant Chinese crypto mining chip maker, Bitmain, to reemerge.

On Friday, a Bloomberg report citing sources familiar with the matter disclosed that Bitmain, valued at $15 billion last year, is planning an IPO for the second half of 2019.

This time, though, the company would not seek to get listed on home soil in Hong Kong but on U.S exchanges, according to the sources.

The report mentioned that Bitmain is likely to be conservative regarding the target raise for its planned IPO. When the mining chip company was planning its IPO in Hong the fundraising target was $3 billion, a figure that would now be placed at anywhere between $300 million to $500 million or slightly higher.

The sources also outlined the progress made so far regarding a possible listing in the U.S, mentioning that Bitmain was “working with advisers” and could submit its filing with the U.S. Securities and Exchange Commission (SEC) within the next month.

Bitcoin Effect?

While some may argue that Bitmain may already have had plans for an IPO in the U.S, there is no denying the fact that rejuvenated crypto markets played a part in the decision.

Bitmain’s primary source of income comes from selling cryptocurrency mining chips, a market that suffered significantly with the rest of the industry during the 2018 bear market.

Since the start of 2019 though, things quickly turned around with most of the cryptocurrencies, of course including Bitcoin, more than doubled in price so far.

Bitcoin is trading at around $9840 with a market cap above $170 billion at the time of writing, marking an increase upwards of 200% since January 1st this year.

Meanwhile, it will be pertinent to point out that in the same way, Bitcoin’s price action has revived talks of a Bitmain IPO, the latter could also have the same impact on the former if the U.S Exchange listing eventually happens.

The post Bitmain IPO’s Come-Back: Following BItcoin’s Price Surge, Bitmain Revives IPO Plans appeared first on CryptoPotato.

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