Mining giant Bitman is reviving its plans for an IPO.
A Bloomberg report quotes anonymous sources as saying that the company is consulting U.S. advisers for an IPO during the second half of this year. It plans to raise between $300 million to $500 million and could file relevant documents with the SEC as early as next month.
A Change in Plans
The Beijing-based company had plans to go public at the Hong Kong Stock Exchange last year. But authorities reportedly “dragged their feet” at its proposal filed in the midst of a cryptocurrency bear market. Their chief concern was related to Bitmain’s business model, which relies on manufacturing crypto mining machines and running data centers for the same activity.
In 2018, as cryptocurrency prices crashed, Bitmain closed its research facility in Israel, downsized its employee count, and replaced CEO Jihan Wu after his failed bet on Bitcoin Cash, a cryptocurrency whose price tumbled by more than 90% last year. “There’s a real risk that they could just not exist anymore in a year or two,” a source from HKSE told Coindesk in December last year.
The overall outlook for cryptocurrencies has changed since then. Bitcoin is back on an upward trajectory and has gained more than 150 percent this year. Facebook has also provided additional legitimacy to crypto by announcing the launch of its Libra token last week.
Still Bitmain’s current fundraising target represents a massive decline in its ambitions from last year, when it sought to raise $3 billion from the public markets. Bitmain is valued at $15 billion in private markets and boasts star investors like Sequoia Capital. It has raised $764.7 million in total, according to Crunchbase. Out of that total, $714.7 million was raised last year.