Mining rigmaker MicroBT is planning a US IPO - report - Android

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Mining rigmaker MicroBT is planning a US IPO - report - Android

crypto mining rig blockchain bitmainMicroBT, one of China's top cryptocurrency mining equipment manufacturers, plans another round of fundraising prior to the IPO.
crypto mining rig blockchain bitmain

One of China’s largest and newest manufacturers of cryptocurrency mining equipment, MicroBT, is readying a US public offering, according to Chinese media reports.

Why it matters: Business is booming for cryptocurrency mining rig makers, as Bitcoin prices have reached historic highs over the last two months.

  • MicroBT would be one of three major Chinese cryptocurrency mining rig makers to go public, along with Ebang and Canaan Creative.

Details: The company is “preparing” to list in the US, Chinese crypto blogger Colin Wu (in Chinese) reported on Wednesday, but he did not specify a timeline for the offering.

  • MicroBT is looking to do another round of fundraising prior to the listing to buy more chips from Samsung so it can churn out more product, according to Wu.
  • The Bitcoin network’s mining capacity has lagged the currency’s rising prices. Mining rig makers are struggling to keep up with demand, and their orders are fully booked for months.
  • Wu estimated that MicroBT’s 2021 revenue would reach $1 billion.
  • MicroBT did not respond to TechNode’s request for comment on Wednesday.

Context: MicroBT is a relative newcomer in crypto mining manufacturing. It was only founded in 2016, about three years after most of its Chinese peers.

  • The company quickly acquired market share with its Whatsminer series, in part because Bitmain, China’s largest player, was entangled in internal turmoil.
  • In September, it set up its first overseas factory to better serve growing demand from non-Chinese clients.

Read more: Is crypto mining really moving to North America?

  • The rig maker was considering an initial public offering in 2019, according to Bloomberg. A legal dispute with Bitmain reportedly put the plan on hold. MicroBT’s founder Yang Zuoxing was Bitmain’s director of chip design. When he founded his own company, Bitmain accused him of stealing intellectual property.
  • Yang was arrested in December 2019 and released on January 2020 on bail.

13/01/2021 06:38 AM