$1.1 Billion In Profits In Q1 2018 Recorded By Bitcoin Mining Company Bitmain: Fortune

Plans of initiating an initial public offering (IPO) in Hong Kong or in some of the other overseas markets where the denominated shares would be valued in U.S. dollar was recently shared with the media by the co-CEO of Bitmain Technologies which is the biggest cryptocurrency mining in the world.

This IPO would be a means of cashing out for some of the early investors in the company which includes the likes of Sequoia Capital and IDG Capital.

According to a report published in the Fortune online magazine, an email from a person who is close to the company had been obtained by ‘Term Sheet’. That email contains a glimpse of the financial status of the company and the latest financial figures of the company that would probably be used while filing for the planned IPO.

Bitmain had reportedly in early June raised about $400 million in a funding round and the company is still in the process of raising more cash after that funding round.

The additional funding that the company is looking to raise would take the market valuation of the company to about $14 billion which means that a 10 to 11times earnings multiple would be available with the company says the reported email. The anticipated new valuation of the company would be a 16.6 per cent increase compared to the most recent reported valuation of the company which was at $12 billion.

The reported internal email available with the media quotes an audit of the company’s business done by KPMG and states that about $1,2 billion in net profits was generated by the company in 2017 while it also generated an approximate of 50 per cent in net margins for the same year.

It has further been reported that in the first quarter of 2018, the company had raked in a net profit of about $1.1 billion. The email further states that anything between $2 and $3 billion could be the net profit for the firm for the full year of 2018 according to conservative estimates of experts and analysts.

The email also says that “Bitmain plans to file for an IPO very soon.”

No comments form Bitmain has been made available to the media so far.

(Adapted from Fortune.com)

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