Bitmain’s $40 Billion Initial Public Offering Plan Could Lead to Crypto Exit For AI Chips
Bitmain’s Plan to Launch an Initial Public Offering
Cryptocurrencies have been expanding all over the world and changed the way in which economy works. At the end of the last year, the most important virtual currency in the market, Bitcoin, reached all time highs close to $20,000 dollars. Since then, it has lost more than 65% of its price.
In the space, several companies have emerged as leaders, including Binance or Bitmain. And indeed, Bitmain is working very hard in order to be listed in the stock market. The proceeds from the Initial Public Offering (IPO) will be used to develop new hardware in order to compete with companies like Google.
Bitmain is going to focus in Artificial Intelligence and improve the miners it is currently selling to the market. Of course, it was a very profitable business when the markets grow, but during bearish times, the results are not so good. The mining firm wants to move away from this industry and diversify its businesses.
The IPO could help Bitmain’s value reach $40 billion dollars. That means that it would not be far off the earnings of other chip-makers in the market such as NVIDIA or Advanced Micro Devices Inc. These two companies have also received an important boost in their earnings during the last year after selling an important number of GPUs for mining activities.
Back in June, Bitmain decided to reduce the price of its chips in order to eliminate from the market other companies, and its profit margin is close to 50% as Fortune reports.
As mentioned before, Bitmain wants to shift into other businesses and markets. With its expertise designing chips, the company moved to artificial intelligence, something that will represent 40 percent of its revenue in the next five years. Indeed, Mr. Jihan Wu, Bitmain’s founder, said that the business would be similar to Google’s AI-focused tensor processing units.
Even if the company is employing U.S. experts and several investors come from the North American country, Bitmain will be listed in Hong Kong.
Until now, there is nothing confirmed on the matter, and we can only say that these are rumors. It seems that Bitmain wants to move away from Bitcoin and virtual currencies and start a different company focused in advanced technology.
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