Venture capital firm Sequoia Capital China has reportedly led a $400 million pre-IPO round in local bitcoin miner and mining chip designer Bitmain Technologies Ltd, in a deal that valued the company at $12 billion.
The reports by local media, which cited information from insiders, also said that Bitmain plans to apply for an initial public offering in Hong Kong in September and expects to go public with market capitalization between $30 billion and $40 billion by the end of this year.
Based in Beijing with offices in Amsterdam, Hong Kong, Tel Aviv, Qingdao, Chengdu, Shanghai and Shenzhen, Bitmain develops and sells bitcoin mining machines using its application-specific integrated circuit (ASIC) chip technology.
Bitmain has made public its plan to go public, with co-founder Jihan Wu saying the move would be a “landmark” for both the company and the cryptocurrency space. The move, he added, would mark a significant step to appease global regulators as it would lend to more transparency and prove the safety and legitimacy of cryptocurrency.
Wu has also said that the company plans to branch out into alternate areas of technology including artificial intelligence.
One of Bitmain’s competitors Canaan Inc has already filed for Hong Kong IPO, from which the company is targeting to raise about $1 billion in initial funding.
For Sequoia Capital China, the investment in Bitmain follows an investment it made in Guangzhou-based consumer lifestyle brand Nome last month.
The venture capital firm, which has over 300 portfolio investments in China, is currently raising up to $15 billion yuan ($2.37 billion) for its fifth yuan-denominated fund. Its portfolio includes Alibaba, Didi Chuxing and Meituan-Dianping.