Bitmain Confidentially Submits IPO Paperwork to the SEC to List Shares on US Security Markets
Bitmain, a crypto mining company, is in talks with US Securities Exchange Commission (SEC) on a possible launch of an initial public offering in the country following a failed launch on Hong Kong exchanges in March this year. The decision comes on the back of an extensive internal feud between the top two shareholders in the company, Jihan Wu and Micree Ketuan Zhan, that saw the latter being ousted from top position by the former.
Bitmain Looks to List on US Based Exchanges
According to the report on Tencent News, Bitmain has filed for an IPO (date and amount to be raised to be confirmed) to the SEC with Deutsche Bank as its banking backer in the deal. The company will now await a call from the agency to appear before the commission and explain the need for a Bitmain IPO. If they convince the commission they will be eligible to start the application process to list in U.S securities markets.
The company filed for listing on Hong Kong securities markets in 2018, but the bear market that stretched through the year discouraged them from launching their IPO. The mining firm let their application time period lapse in March this year as the world started sensing cracks in the top leadership. The feud between Wu and Zhan seems to have escalated following the recent dismissal of Zhan by Wu from the executive directors’ position while away on company duty.
The IPO plans are currently in the hands of Jihan Wu and CFO Liu Luyao, leading the company in the upcoming inquires by the SEC for the next two to three months.
Zhan Dismissed Amidst Launch of IPO
Micree Zhan, co-founder of Bitmain with Wu, was dismissed from his post on Oct. 29 while away on company-related business. According to the Tencent News report, Zhan is accused of mismanagement of funds and a wayward focus for the primarily developed Bitcoin mining firm.
Actions to dismiss Zhan were made by Wu after receiving calls from distress employees and sacked senior officials to lead the company. Wu is currently trying to win back the support of top officials in the company to proceed on with the IPO despite threats of legal action from Zhan.
Bitmain influence in the US
In a bid to make the IPO process successful, the company has acquired the services of former NASDAQ rep to China, Zheng Hua, as a consultant at the firm. This comes on the back of a significant investment in “the biggest mining facility in the world” set to be opened in Texas.
Nonetheless, the company’s competitor, Canaan, successfully launched their IPO on NASDAQ under the ticker symbol “CAN” with a rough valuation estimation of $400 million USD.