Bitman raises $400 Million Prior to its $12 billion IPO, Growing Dominance

Bitmain has been trending due to its growing dominance, prior to its $12 Billion ICO. In a pre-IPO funding round, Bitmain raised over 400 Million USD, as reported by China Money Network.

It was founded in 2013, was reportedly valued at $12 billion by Sequoia Capital which is a venture capitalist firm. Jihan Wu, the CEO of Bitmain, had mentioned earlier about a possible IPO (Initial Public Offering) in Hongkong. But speculations are high as to where will Bitmain allocate $30 billion in public funding.

The ASIC industry dominance of Bitmain has continued and Bitmain based mining pools collectively account for nearly 50% of all bitcoin mining power. It is the largest manufacturer of ASICs and is getting closer to 51% of Bitcoin’s network hashrate. This is because last week its two subordinates have reached close to 42%. The mining and manufacturing giant owns both Antpool and BTC.com.

Network hashrate is the total power used to send and confirm transactions within that network. Bitmain can still improve its network hashrate share. The firm also mines Bitcoin Cash (BCH), apart from Bitcoin, as both use the same algorithm. BTC.com has 10.4 percent of the Bitcoin Cash network whereas, Antpool stakes a 10.6 percent.

Antpool is a mining pool and is operated by the Beijing based company which found about 14.6% of all bitcoins last week. On the other hand, BTC.com is independent and discovered 27.2% of all bitcoins last week.

The company earned between $3 to $4 billion last year and has a vested interest in keeping the Bitcoin network healthy. The company might also lower the price of its ASICs. It designs application-specific integrated circuit (ASIC) chips. It currently controls 80 percent of this market, though a number of upstart competitors hope to decrease its dominance which is only possible if an existing or a new corporation try harder to create a revolutionary new ASIC and outshines Bitmain.