BREAKING NEWS

Scoop: Bitcoin Mining Company Bitmain Hit $1.1 Billion in Profits in Q1 2018

Scoop: Bitcoin Mining Company Bitmain Hit $1.1 Billion in Profits in Q1 2018
30 Jul
10:36

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.

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.

— The email also says that “Bitmain plans to file for an IPO very soon.”

Fortune recently sat down with Bitmain co-founder and co-CEO Jihan Wu, in which the billionaire addresses some of the controversy and conspiracy theories that have swirled around his company. Read the full story here. Wu was also featured on Fortune’s Ledger 40 Under 40 last week.

Fortune has reached out to Bitmain for comment.

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