Uber’s Biggest Shareholder Backs Crypto Giant Bitmain

Bitmain has been making huge waves recently. The crypto mining hardware manufacturing giant has already secured China’s biggest technology company Tencent, Japan’s Softbank, and Uber’s biggest shareholder as investors in a pre-IPO financing round.

Bitmain is commonly known for manufacturing bitcoin mining equipment and operating mining pools. Although the company has come under a lot of criticism because of engaging in both sides of the market (manufacturing mining equipment and also operating mining pools), that has not created any obstacles in it becoming one of the fastest growing companies in the world right now.

The Chinese crypto giant is attracting some of the world’s biggest companies and investors ahead of its initial public offering (IPO) on the Hong Kong Stock Exchange later this year. They are also in the process of securing a $1 billion round of financing. And at closing, it would value the firm at $15 billion.

According to QQ which is a Chinese publication, Bitmain completed the pre-IPO raise on Saturday in a round of financing that notably includes Tencent, the Chinese technology conglomerate with a market cap that rivals that of Facebook, and it is also heavily invested in a number of tech firms around the globe. Most notably, it is known for being Uber’s largest shareholder.

These huge investments came in thanks to Bitmain’s robust revenues this year. The firm has raked in over $1.1 billion in profit during Q1 2018 which is already more than other hardware manufacturing companies like Nvidia that have been around for decades. Nvidia, a mainstream hardware giant reported a net income of $1.2 billion in Q1.

This is the biggest reason why there has been a lot of interest in Bitmain from investors around the world. The crypto giant has seen a 16.5% increase in its overall valuation in less than 45 days, thanks to a recent $400 million round of financing in June before which it was valued at $12 billion.

The company had its fair share of hardships and restrictions through which it had to grow. Even after China’s restrictive crypto industry policies since early 2017, the company continued to make record profits all thanks to the bear market that it could serve.

Bitmain has been heavily diversifying its own portfolio so that it is not just restricted to manufacturing crypto mining hardware. They have made major investments in the U.S.-based crypto trading firm Circle, and has also invested in one of the biggest internet web browsers, Opera.

Not only that, Bitmain has confirmed that it will be establishing a $500 million cryptocurrency mining facility in a Texas which would end up creating as many as 400 new jobs.

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