Bitcoin Mining Company Bitmain Hit $1.1 Billion in Profits in Q1 2018

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Bitcoin’s value comeback is not being mirrored in transaction quantity.

The co-CEO of Bitmain Applied sciences, the world’s largest cryptocurrency mining firm, not too long ago revealed plans to conduct an preliminary public providing in Hong Kong, or in an abroad market with U.S. dollar-denominated shares. The IPO would give early traders, together with Sequoia Capital and IDG Capital, a possibility to money out.

Time period Sheet has obtained an electronic mail from a supply near the corporate, which incorporates a few of Bitmain’s newest financials forward of its deliberate IPO.

— Bitmain is elevating additional money in addition to a $400M spherical reported in early June. The brand new funding would worth Bitmain at roughly $14 billion, implying a 10 to 11x earnings a number of, in line with the e-mail. This can be a 16.6% improve from the corporate’s most not too long ago reported $12 billion valuation.

— The e-mail cites a KPMG audit of the enterprise and studies that Bitmain produced $1.2 billion in internet revenue and an roughly 50% internet margin in 2017.

— Bitmain reportedly introduced in $1.1 billion in internet revenue simply in the primary quarter of 2018. Based on the e-mail, a conservative estimate of what the corporate may earn in internet revenue for the complete 12 months hovers at roughly $2 to $three billion.

— The e-mail additionally says that “Bitmain plans to file for an IPO very quickly.”

Fortune not too long ago sat down with Bitmain co-founder and co-CEO Jihan Wu, in which the billionaire addresses a number of the controversy and conspiracy theories which have swirled round his firm. Learn the complete story right here. Wu was additionally featured on Fortune’s Ledger 40 Underneath 40 final week.

Fortune has reached out to Bitmain for remark.

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