Bitmain Technologies, based in China, is probably one of the most powerful and controversial companies in the cryptographic space and has created a reputation for secrecy, but this has just changed.
Founded by billionaires Jihan Wu and Micree Zhan, Bitmain had been very reserved for his books, but now that he decided to become public on the Hong Kong stock exchange, he revealed his numbers.
For starters, Bitmain has been surfing cryptography for five years, and after his last round of financing, he reported a valuation of $ 12 billion.
A Big Four audit
KPMG has carried out the financial inspection of Bitmain's statements and reported that the company has made $ 742.7 million in profits during the first six months of 2018. This is a 900% increase in earnings starting from 2017. Turnover increased ten-fold over the same period to $ 2.8 billion, and its adjusted net return was 58.8%.
"Clearly, the numbers are quite profitable," says Brian Kelly, founder and CEO of BKCM, an investment company focused on digital currencies. Explain that profitability was a concern for participants in the crypto market in light of the sharp decline in the price of Bitcoin and altcoin. If Bitmain was not in the green, he could have put pressure on an already crenellated space.
The company also revealed investments in Bitcoin Cash, information that brought the cryptocurrency price of around 20% to $ 516 currently, CoinMarketCap.com data show. "They will not have to sell any of their cryptographic holdings, this is really good for cryptocurrencies," adds Kelly.
Other numbers revealed by the audit show that Bitmain held $ 886.9 million of cryptocurrency activities at the end of June or about 28% of total assets. It also reported a write-down of $ 102.7 million on encrypted assets and an inventory depreciation fund of $ 252.7 million. Meanwhile, stocks increased to $ 887 million from $ 558 million at the end of last year.
Sales of Bitmain mining hardware accounted for 94.3% of revenue; 1.5% mineral pools; mining companies 0.8%; owner mining 3.3%; another 0.1%, the audit reveals further.
Thus, the long-awaited initial public offering (IPO) of the company was presented, and an increase of billions of dollars is expected, but for now it is not clear to what extent the company will be evaluated. Bitmain has yet to reveal how many shares it will offer and the schedule for the IPO.