Sequoia China, EDBI back Bitmain’s Series B round of up to $400m

Bitmain cofounder Jihan Wu. Photo: Bloomberg

Sequoia Capital China has reportedly led a $300-400 million Series B round for Chinese Bitcoin miner and mining chip designer Bitmain Technologies Ltd, with participation from Singapore’s EDBI.

Another known investor in the round, according to the local media reports citing insiders, is American technology hedge fund Coatue Management.

It is understood that the round will be the last venture funding raised before Bitmain files for an IPO as it had been previously reported that the company plans to be publicly listed in Hong Kong in September. It is targeting a market capitalization of between $30 billion and $40 billion by the end of this year.

Bitmain develops and sells bitcoin mining machines using its application-specific integrated circuit (ASIC) chip technology. Its co-founder Jihan Wu said it proposed IPO 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.

The company, which has offices in Amsterdam, Hong Kong, Tel Aviv, Qingdao, Chengdu, Shanghai and Shenzhen, raised its Series A last year, securing $50 million in a round led by Sequoia Capital and IDG Capital.

An IPO for Birmain would see it follow the footsteps of one of its competitors, Canaan Inc, which has already filed for a Hong Kong IPO and is targeting to raise about $1 billion in initial funding.

For Sequoia Capital China, the news of the investment comes a week after the firm’s participation in $80-million Series B round for Australian-based fintech startup Airwallex.

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.

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