Is Bitmain planning to raise $3 billion through IPO?

Beijing-based crypto mining firm Bitmain Technologies is planning to launch an initial public offering (IPO) in September on the Hong Kong stock exchange that could raise up to $3 billion.

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This would provide early investors, including Sequoia Capital and IDG Capital, an opportunity to cash out, according to a recent article by Coin Rivet.

Bitmain to branch out

Sources close to Bitmain believe that Wu is seeking to raise funds to branch out to areas such as artificial intelligence. In May, Wu said that “the challenge is advancing our technology beyond what we’ve already achieved.”

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He also noted that Bitmain had reported $2.5 billion in revenue in 2017 and that he was open to a listing in Hong Kong or any other overseas stock market with US dollar-denominated shares. Wu and Micree Zhan, Bitmain’s other co-founder, own 60% of the crypto mining venture.

Bitmain would not be the first firm to seek an IPO listing at the Hong Kong stock exchange. Canaan, a crypto mining gear manufacturer, has already done so, seeking to raise an estimated $1 billion for AI applications. Ebang International has also expressed intentions to go down this route.