Bitcoin Mining Giant, Bitmain, Records $1.1 Billion Profit in Q1 2018
Bitmain, the Bitcoin mining behemoth continues to enjoy rapid expansion and a greater market share of the cryptocurrency mining niche. The company recently announced plans for an initial public offering (IPO) as well as 2018 first-quarter profits of more than $1 billion. Also, the company reportedly controls a large chunk of the Bitcoin mining hashrate.
Bitmain Could Earn $3 Billion Profit in 2018
According to Fortune, Term Sheet received a confidential email for an inside source with the coming, containing some financial details of the firm. Bitmain raked in $1.1 billion in profits in the first quarter of 2018. This figure is a little shy of the $1.2 billion profit made by the company in the whole of 2017.
Based on a KPMG audit, Bitmain reportedly earned a 50 percent net margin in 2017. The company is projected to make anywhere between $2billion to $3 billion in profit.
The Bitcoin mining behemoth is also mulling the possibility of an IPO. Recently, company CEO, Jihan Wu, spoke about the company’s plans to conduct an ICO in Hong Kong. If the plan does go through, the company would be following in the footsteps of Canaan Creative, another Bitcoin mining firm.
One of the major driving forces for the IPO plan is to desire to provide an opportunity for company investors such as IDG Capital and Sequoia Capital to recoup their investments. Bitmain finished its latest funding round in June 2018, raising about $400 million which increased the company’s valuation to $12.
If successful, an IPO could push Bitmain’s value to more than $14 billion which could increase its earnings by multiples of ten or eleven. The shares to be sold in the IPO are expected to be denominated in U.S. dollar.
Bitcoin Mining Monopoly
In June 2018, reports began to emerge of Bitmain reaching 51 percent control of the Bitcoin mining hashrate. At the time of writing this article, the company controls 31.7 percent over the last 24 hours. However, despite the decline, the company still controls a significant part of the entire network hashrate. The company recently opened a new 20,000 sq. foot office in Silicon Valley.
What do you think about the Bitmain’s profit earnings for the first quarter of 2018? Keep the conversation going in the comment section below.
Image courtesy of Blockchain.com.