From Fortune's Term Sheet, July 30:
Scoop: Bitcoin Mining Company Bitmain Hit $1.1 Billion in Profits in Q1 2018
The co-CEO of Bitmain Technologies, the world’s largest cryptocurrency mining company, recently revealed plans to conduct an initial public offering in Hong Kong, or in an overseas market with U.S. dollar-denominated shares. The IPO would give early investors, including Sequoia Capital and IDG Capital, an opportunity to cash out....MORE
Term Sheet has obtained an email from a source close to the company, which includes some of Bitmain’s latest financials ahead of its planned IPO.
— Bitmain is raising further cash in addition to a $400M round reported in early June. The new funding would value Bitmain at approximately $14 billion, implying a 10 to 11x earnings multiple, according to the email. This is a 16.6% increase from the company’s most recently reported $12 billion valuation.
— The email cites a KPMG audit of the business and reports that Bitmain produced $1.2 billion in net profit and an approximately 50% net margin in 2017.
— Bitmain reportedly brought in $1.1 billion in net profit just in the first quarter of 2018. According to the email, a conservative estimate of what the company could earn in net profit for the full year hovers at approximately $2 to $3 billion....
