Chinese cryptocurrency mining giant Bitmain officially filed on Wednesday a draft application for its highly-anticipated initial public offering (IPO) on the Hong Kong Stock Exchange (HKEX). In the preliminary document, the company also made its first public financial statement, disclosing its figures for the first half of the year.
The prospectus is pending further listing hearings from the HKEX. The application proof lacks certain details, including potential valuation of the stock, number of shares to be offered, and timeframe for the listing. However, the company revealed it would use the IPO proceeds to invest in research and development and expand its production.
Bitmain CEO Jihan Wu first revealed the company’s intentions to go public in June 2018. The mining rigs maker has since made several headlines indicating that the stock market flotation, which is expected at the end of 2018 or the beginning of 2019, is set to raise as much as $18 billion.
Bitmain would be the third and the largest Chinese crypto miner to float in Hong Kong this year. Canaan and Ebang filed their listing documents in May and June, respectively, but have yet to complete their IPOs.
Bitmain reports robust first-half performance
While lacking listing details, Bitmain’s IPO prospectus provided insight into the company’s financial situation, revealing an almost tenfold revenue increase, from $274.5 million in the first six months of 2017 to around $2.8 billion in the first six months of 2018. The company also reported a first-half profit of $742.7 million, an 800% year-on-year increase.
The robust performance comes despite a bearish crypto sentiment in recent months. Since reaching its peak in December 2017, the digital assets market has lost almost 75% of its value.
Bitmain’s IPO application highlighted the company’s dominant position in the crypto mining industry.
“According to Frost & Sullivan, we are the largest global ASIC-based cryptocurrency mining hardware company in terms of sales revenue in 2017, accounting for a market share of 74.5%,” the document read.
Alongside its lucrative crypto mining equipment manufacturing business, Bitmain operates 11 mining centers in China and two major mining pools, BTC.com and Antpool. According to the IPO document, the two accounted for 37.1% of the hashrate of the Bitcoin network as of August 2018.