Sequoia Capital China said to lead $400m pre-IPO round in bitcoin miner Bitmain

Bitmain cofounder Jihan Wu. Photo: Bloomberg

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.

Also Read:

Sequoia said to close fundraising for bulk of $8b global fund

China regulator receives Xiaomi’s IPO application

China: Bitcoin miner Canaan Creative eyes IPO, prefers overseas listing

 

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.