The crypto market is soaring and mining giant Bitmain is taking advantage of it.
The Bloomberg reported on June 21 that the firm is planning another initial public offering (IPO), this time in the United States.
Earlier this year, its initial application on the Hong Kong Stock Exchange lapsed during purported financial troubles due to crypto bear market, as well as its holdings in bitcoin cash, which were cut in half after the Bitcoin SV chain split.
With the market gaining bull momentum, Bitmain’s financial life is getting revived. The firm has been talking to advisers and preparing documents to apply for an IPO with the U.S. Securities and Exchange Commission. This filing could be accomplished by July of this year. According to sources, the IPO could go live before the year ends.
Having a $15 million valuation granted in its Hong Kong IPO application, Bitmain was looking to raise $3 billion in funding on its first stage. However, the company is now purportedly seeking a more realistic $300-500 million funding, although the figure is not final.
The U.S. might give a more advantageous investment landscape for the firm. In its report, Bloomberg mentions a South China Morning Post report that says regulators and exchange operators see IPOs by cryptocurrency firms as too “premature” to be offered to retail investors.
Notwithstanding, companies are still pursuing the IPO path. For instance, Canaan and Ebang, have both applied for IPOs on the Hong Kong Stock Exchange. Canaan Creative, however, dropped these plans, while Ebang’s two filings expired. According to Bloomberg, Canaan Creative is also considering having an IPO in the U.S.
If approved, Bitmain and/or Canaan Creative would become the first Bitcoin-related firms to be traded publicly on conventional markets.