If you thought Binance’s $300 million of revenue in the first half of 2018 was an accomplishment, we suggest taking the necessary precautions…. hold your jaw.
The reason? Bitmain blew that figure out of the water, recording $1.1 billion in Q1 alone. But, here’s the kicker – that was their profit. Plus, estimates from a Forbes source expect that the mining giant could end the year with another $1 to $2 billion in net profit.
It’s full steam with a probable IPO
Initial reports that Jihan Wu could take Bitmain public surfaced in June when the company was valued at $12 billion. However, according to Forbes’ mole, that number is now closer to $14 billion in light of another capital raise, giving Bitmain an earnings multiple of 10-11x.
How they got here:
- September 2017: $50 million Series A round that included Sequoia Capital and ING Capital
- June 2018: $400 million Series B round led by Sequoia Capital
Completing an IPO should provide Bitmain with sufficient leverage to squeeze weaker competitors from the market. And as their R&D improves, Bitmain will likely develop new ASIC mining chips to wield a greater influence over other digital currencies.
The bottom line: Bitmain has a massive runway and multiple jets at the fuselage. Expect them to remain in the lead for years to come.