Bitmain is planning to buy 600,000 mining chips, a Taiwanese chip manufacturer familiar with the deal told WeChat. The company has reportedly ordered 7-nanometer chips with a capacity of 50 terahashes per second.
WeChat report claims that due to a capacity increase of 50%, Bitmain’s valuation could go up to $12 billion in the following months.
Bitmain first announced its plans to conduct an IPO in 2018. Back then, the company’s valuation was around $18 billion, with China International Capital Corporation, Tencent Holdings, and Softbank Group mentioned among potential investors.
Later, a major decline in the price of Bitcoin heavily impacted all major mining operators, including Bitmain. In early 2019, the company reportedly made numerous layoffs and closed some of its mining facilities. Bitmain also announced $625 million in losses in the first two months of 2019.
However, the recent recovery in the crypto markets accompanied by an increase in mining profitability have rekindled Bitmain's plans to conduct an IPO. According to Bloomberg, the company could go public by the end of 2020 in the United States.
Photo: Piotr Swat