Bitmain has been relatively quiet since it sacked its former CEO Jihan Wu back in December 2018. It’s Hong Kong IPO expired and with the collapse in Bitcoin price, many believed that it would be the end of Bitmain. However, it appears as if Bitmain and its new CEO Wang Haichao have been working on a master plan in the shadows, waiting for the perfect moment. With the phenomenal rise in Bitcoin’s price over the past few months, mining has once again become ultra-profitable for the big miners and Bitmain is looking to get back in the game.
In a bid to raise capital and start up operations once more, Bitmain has been sniffing around the US looking to hold an IPO. Suspicions look like they’ve been confirmed as the mining giant once again began offering stock options to all employees – something that was reserved only for core employees under the reign of Jihan Wu.
IPO Set for the Second Half of 2019
Bitmain has been hard at work trying to rebuild its business model and it’s made a few strategic decisions. Originally, Bitmain was going to do an IPO in Hong Kong, but the regulators decided that they weren’t going to accept any IPO applications from crypto related businesses – just as well based on how Bitmain’s year ended. Couple this with Trump’s new tariff on Chinese imports and you have a recipe for disaster.
So, what Bitmain is doing is setting up in the United States and applying to the US Securities Exchange Commission (SEC) to hold and IPO. It will then look to manufacture its hardware in the US, thus skirting around Trump’s new 25% tariff on imported Chinese electrical equipment. It looks very much like – if it can get the go ahead from the SEC – that Bitmain’s IPO will take place in the second half of 2019.
Picking Good Mining Locations
It’s without a doubt that Bitmain has put a lot of working into selecting its new mining locations – especially after rumors that China could ban crypto mining altogether. Towards the end of Jihan Wu’s reign, Bitmain opened up a data center in Washington state – one of the best locations for crypto miners. Thanks to an abundance of hydroelectric power generation in the state, electricity costs are amongst the lowest in the US. This means Bitmain can ride the eco-friendly Bitcoin mining bandwagon as well as enjoy ultra-low-cost mining. Bitmain could also consider the Permian Basin in Texas as flaring reaching an all-time high, but it would have to risk losing out on investors who side with green and eco-friendly companies.
Bitmain very much looks as if it’s back in action, and we could see its IPO launch later this year. The IPO is expected to sell out in record time, with shares selling faster than hot cakes. If you’re lucky enough to manage to get some IPO Bitmain stock, you could very well be on to a winner!