Billion Dollar Unicorns: Bitmain Lists To Go Public

According to a Coherent Market Insights report published earlier this year, the global cryptocurrency mining market is estimated to grow at 30% CAGR from $610.91 million in 2016 to $38.38 billion by 2025. The market is dominated by China’s Billion Dollar Unicorn Bitmain, which recently filed to go public.

Bitmain’s Offerings

Beijing-based Bitmain was founded in 2013 by Wu Jihan. It has been focused on building technology within the cryptocurrency, blockchain, and artificial intelligence segments. The company operates three key businesses: providing cryptocurrency mining tools, supporting blockchain, and managing a fabless operation to drive AI growth. Its biggest segment, though, is cryptocurrency mining.

According to Frost & Sullivan, Bitmain is the world leader in ASIC-based cryptocurrency mining hardware with a nearly 75% market share. Its cryptocurrency mining products are offered under the Antminer label. Today, it is known for its two key tools and Antpool, one of the world’s largest Bitcoin mining pools in terms of computing power.

Through its fabless operation, Bitmain manages the chip design process and can deliver higher computing power for cryptocurrency mining tools at lower costs. Besides chip-design for the cryptocurrency market, Bitmain has also expanded its fabless operations within the AI industry. Last year, it launched its first AI deep learning chip under the Sophon brand. Its AI chips are used for developing cloud systems as well as object, image, and facial recognition purposes.

Bitmain’s Financials

Bitmain recently filed its IPO prospectus to list on the Hong Kong Stock Exchange. Its revenues have grown from $137.3 million in 2015 to $277.6 million in 2016 to $2.52 billion in 2017. For the six months ended June this year, Bitmain saw revenues grow 937% to $2.85 billion. The company has been profitable. Profits grew from $48.6 million in 2015 to $113.6 million in 2016 to $701.4 million in 2017. For the six-month period ending June this year, profits grew 795% to $742.7 million. Adjusted EBITDA for the six-month period grew from $101.8 million to $1.12 billion. The company is targeting revenues of $10 billion for the year.

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Disclaimer: More investigation and analysis of Unicorn companies can be found in my latest Entrepreneur Journeys book, Billion ...

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