Bitcoin mining may have already attracted the interest of tech titans and propelled certain chipmakers to new heights, but an explosive new report courtesy of Term Sheet highlights that Bitmain Technologies – the world’s largest cryptocurrency mining company – might well be the biggest winner, having raked in $1.1 billion USD in profits in 2018’s first quarter.
Through a source close to the company, Term Sheet disclosed that Bitcoin would be valued at about $14 billion USD thanks to a new $400 million USD funding round conducted in June this year.
Accordingly, the email cites a KPMG-led audit that highlighted Bitmain’s $1.2 billion USD net profit and 50% net margin in 2017. The company, then, is on-track to bring in approximately $2 billion to $3 billion USD in net profit throughout the course of 2018.
Rumors have swirled that Bitmain is reportedly considering an initial private offering (IPO) in a market with US Dollar-denominated shares.
The move seems a likely one, given that the company recently disclosed its shipping and mining policies with the view of cultivating a “fair and transparent cryptocurrency ecosystem”.
The company has committed to disclosing data every 30 days that will reveal which algorithms Bitmain is mining for itself, as well as the total hashrate of all Bitmain hardware on those algorithms. Further, the company will distribute shipping and volume information through its Twitter account.
The firm recently also reiterated its policy on ‘secret mining’ practices – where a manufacturer covertly mines a particular cryptocurrency with a new mining rig before making such hardware available to the public – and confirmed that it has a “long-held zero-tolerance policy” on such matters.
The company’s co-founder, Jihan Wu, has yet to disclose whether, where, and when Bitmain plans to reveal any form of IPO.
For the most part, cryptocurrency projects have remained divided on the emergence and sale of ASIC mining rigs. While the Zcash community formally moved to support the presence of ASICs, other cryptocurrency networks – such as Monero – introduced hard forks to negate their impact.