Bitcoin Mining Firm Bitmain Files For US IPO

November 4, 2019 / by Crypto.IQ

China-based Bitcoin mining firm Bitmain Technologies has filed an initial public offering application with the US Securities Exchange Commission. Deutsche Bank sponsored the IPO that the crypto mining giant filed early this week.

According to reports, Jihan Wu, a co-founder, and Bitmain’s CFO Liu Luyao, dominated the IPO plans. To boost the chances of having a successful IPO, Bitmain has reportedly hired Zheng Hua as a consultant. Zheng Hua is a former Chinese representative of Nasdaq.

The process of reviews by the SEC will be comprised of three rounds of investigations that could last up to two months. The SEC will question the firm before providing an F1, which is a certification necessary for foreign companies intending to list in the US. Sources familiar with the issue indicated that the SEC does not have a skewed stand regarding blockchain businesses. Their main concern is technical and professional issues.

Bitmain’s Hong Kong IPO flawed

This latest move to seek a listing in the US comes at the back of a failed attempt to list on the Hong Kong Security Exchange last year. Bitmain’s application expired in March this year, and they did not re-file the application. The botched Hong Kong IPO sought to raise $3 billion. 

Bitmain is seeking to raise between $300 million and $500 million with the US IPO. The Bitcoin mining firm did not comment regarding its lapsed application. 

Bitmain parts ways with co-founder Micree Ketuan Zhan

The firm has had an eventful past few days. Tencent News reported that there was a management shakeup that resulted in the ouster of Micree Ketuan Zhan. Zhan is a co-founder of Bitmain and was an executive director of the company. Reports indicated that Zhan might have left the company amid indications of internal company wrangles.

It is still unclear how the leadership change will affect the listing process. During the last listing application on HKSE, Zhan was the major shareholder with a 36% interest in Bitmain Holdings. Jihan Wu, the current chairman and fellow co-founder, owns around 20% stake of the company.

The IPO move comes days after the Bitmain unveiled a new mining plant in Texas. The plant begins at 25 megawatts for mining and has the potential of scaling up to around 300 megawatts.