Text | Aloe Vera, Little Parker
On the evening of September 26, Bitmain uploaded on the Hong Kong Stock Exchange, officially launched the listing plan in Hong Kong., officially launched the listing plan in Hong Kong.
According to the prospectus, Bitmain’s business segment includes mining machine sales, mining pool operations, mining farm services, and self-operated mining. Among them, the sales of mining machines accounted for the majority of the total revenue and the proportion increased year by year. In the first half of this year, the sales of mining machines reached 2.56 million units, accounting for nearly 95% of the total revenue. The company stated that the average selling price of mining machines in 2018 has decreased compared with 2017, because the increase in mining difficulty has led to a decrease in the expected economic return of mining machines.
In addition, as of June 30, 2018, Bitmain has opened 11 mines in China, located in Sichuan, Xinjiang and Inner Mongolia. These mines can accommodate about 200,000 mining machines and mainly operate two mining pools, namely BTC .com and AntPool, Bitcoin computing power occupies the top two places in the world respectively.
The prospectus disclosed that Bitmain’s net profit increased from US$83 million in the first half of 2017 to US$743 million in the first half of 2018, a year-on-year increase of 794.8%.
In the first half of the year, Bitmain’s net profit was US$743 million, an increase of nearly eight times year-on-year; the adjusted EBITDA was US$1.123 billion.
In addition, in the column of gross profit, since 2016, the company’s gross profit cost has been decreasing year by year. In the first half of 2018, the gross profit rate dropped to 36.2%, while this ratio was 48.7% in the first half of 2017.
In response to the instability of the value of digital currency assets, Bitmain added in the prospectus that due to "large fluctuations in the value of encrypted currency from time to time, which may distort our operating performance and financial status", the company will record encrypted currency assets at cost. , cryptocurrencies are not revalued at their fair value at each accounting reference date.
It is also worth noting that Bitmain will adopt a voting structure with different rights for the same share, and it is expected to become the third company with different rights for the same share in Hong Kong after Xiaomi and Meituan.
Among the shareholders, Ketuan Zhan holds more shares (3,988,768,187 shares) than Jihan Wu (2,243,331,244 shares) by tens of millions, becoming the largest shareholder of Bitmain. And among the 7 director seats of Bitmain, Sogou CEO Wang Xiaochuan is also on the list.
In the investment information column, the pre-IPO round previously reported by the media did not appear. Following the B round of financing of approximately US$300 million in July, the last round of financing was the B+ round in August 2018. The total amount of financing was About 500 million U.S. dollars, the investor has not yet disclosed. Previously, in September 2017, Bitmain received US$50 million in Series A financing from Sequoia Capital, IDG Capital, etc.; in August 2018, it completed Series B financing, with investors including Sequoia China, the US hedge fund Coatue, and Singapore’s state-owned emerging market investment fund EDBI.
In the future strategy of the prospectus, Bitmain stated that part of the proceeds from the fundraising will be used for the research and development and expansion of production of high-tech AI chips and AI applications, and revealed that it is developing the next generation of 7nm ASIC chips.
Canaan CreativeCanaan CreativeSubmit an IPO application to the Hong Kong Stock Exchange.
As soon as the prospectus came out, BCH rose sharply in a short period of time. As of press time, Coinmarketcap quoted $536.02, an increase of 24.09%.
Interpretation of the prospectus is being continuously updated...
