Bitmain Posts $1 Billion Dollar Profit in Q1 2018, IPO Plans Underway

Mining giant Bitmain has posted profits in Q1 of 2018 totaling $1.1 billion. Sources say, “Bitmain plans to file for an IPO very soon.”

An email has been obtained by Term Sheet from a source closely connected to Bitmain. The email details Bitmain’s latest financials and mentions the company’s plan for a initial public offering (IPO) in Hong Kong later this year.

“Bitmain is raising further cash in addition to a $400M round reported in early June. The new funding would value Bitmain at approximately $14 billion, implying a 10 to 11x earnings multiple, according to the email,” reports Fortune. “This is a 16.6% increase from the company’s most recently reported $12 billion valuation.”

In 2017, Bitmain generated $1.2 billion in net profit and an “approximately 50% net margin.” With that number almost already reached in the first quarter of 2018, it is likely Bitmain will double or even triple its 2017 profit totals by the end of this year.

Bitmain dominates the cryptocurrency world on many levels. In addition to owning the two largest mining pools in the world, which together making up 34 percent of Bitcoin‘s total hashing power, Bitmain also serves as the largest manufacturer of cryptocurrency mining hardware. The Beijing-based company has continued to expand its reach into markets worldwide. Earlier this month Bitmain revealed plans to open a 20,000 square foot office in the heart of Silicon Valley.

Further details of Bitmain’s planned IPO have yet to be released.

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