Bitmain, the world’s number one manufacturer of crypto mining hardware, on August 06 announced they were launching a $500 million blockchain center and mining facility that will be based in the city of Rockdale, Milam County, Texas. The launch of this facility will be part of Bitmain’s strategy to expand into North America. According to the press release, construction is underway and is expected to be complete by the end of 2018. The setup of the blockchain center will then commence early in 2019 following the completion of the facility construction. As the company continues with this project, it is reported that it is also planning to launch its IPO sometime in September.
Bitmain Invests $500 Million Ahead Of Rumored IPO Launch
Bitmain is reported to have completed a pre-Initial Public Offering that saw its valuation climb to $15 billion following the backing of some major institutions like Tencent, and Softbank. According to reports, the company is now planning to launch its IPO on the Hong Kong Stock Exchange as soon as September. Having posted over $3 billion in profits over 2017, and announced early on in the year that it dominated over 70% of the world’s mining hardware, it is expected that the company will be valued at $30 billion. This is a milestone that the company can easily achieve given the company’s market dominance, profitability and the fact that it could be the first of its kind in the securities exchange.
Now with the announcement of the $500 million facility, Bitmain has taken a stronger position as it plans for its IPO. The facility on top of helping the company expand its influence into the U.S will offer over 400 jobs over the next two years to the local community. According to the press release, the company will work with local technical and professional schools to provide education to the local community before offering them jobs in the facility.
Although the company already dominates the market with its products, it seems that it’s not slowing down anytime soon. Back in June, the CEO, Jihan Wu, speaking to Bloomberg hinted on an IPO as well as plans to venture into artificial intelligence, which Jihan Wu views as a safer avenue given that it is supported by the Chinese government, unlike cryptos.
The challenge is advancing our technology beyond what we’ve already achieved,
However, during the interview, the CEO expressed the need to keep advancing as many of the company’s competitors were looking to grab its market share;
Bitmain is trying very hard to maintain its advantage,
Indeed, the company is really trying hard to maintain its dominance as some of its rivals continue to make moves that are aimed at claiming the top spot from the Beijing-based firm. Its greatest competitor, Canaan, has reportedly already filed for an IPO in the Hong Kong Securities Exchange. However, given that Canaan is expected to raise about $1 billion and only makes up a small percentage of Bitmain’s profitability, it seems it’s still miles away from taking down the world’s leading crypto mining hardware producer.
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