Bitmain, the largest cryptocurrency mining company in the world continues to attain even greater heights. The number one manufacturer of application specific integrated circuit (ASIC) bitcoin miners is now valued at $12 billion. This new valuation follows the recently concluded series B funding round which realized $400 million for the company. There are also reports that Bitmain plans to buy a majority stake in the upcoming Opera Ltd. IPO.
Worth $12 Billion
Local Chinese media outlet, Caixin, reported that a conglomerate of investors was able to raise $400 million in a new funding round for the mining giant. China-based Sequoia Capital, U.S.-based Coatue hedge fund, and Singapore government-owned EDBI were the primary investors in the funding drive. Sequoia Capital was also involved in Bitmain’s series A funding back in July 2017 which raised $50 million.
According to reports from the company, Bitmain might be conducting an IPO soon. Inside sources reveal that Hong Kong would likely be the location for the offering. If the company does go through with such a plan, it will join fellow mining company Canaan Creative which announced its IPO earlier in the year.
Bitmain is also gearing up to invest in the upcoming Opera Ltd. IPO. Opera is the company behind the eponymous web browser – Opera internet browser for desktop and smartphones. According to reports, Bitmain wishes to invest $50 million in buying the company’s shares during its $115 million IPO.
In a matter of four years, Bitmain has made itself become one of the most successful companies in the blockchain industry. The company reportedly made profits of about $3 billion to $4 billion in 2017. Bitmain controls the market for Bitcoin mining as the largest manufacturer of mining rig hardware.
Approaching 51 Percent Control of the Bitcoin Hashrate
Bitmain’s monopoly of the Bitcoin mining scene isn’t restricted to the manufacture of ASICs alone. The company also owns AntPool and BTC.com, the two largest BTC mining pools as well as a controlling stake in ViaBTC, the third largest mining pool. Together all three allow Bitmain to approach nearly 51 percent control of the Bitcoin mining hashrate. With such a level of control, the company could theoretically manipulate the BTC network. Bitmain has, however, maintained that it has no incentive to carry out such an attack, considering the sweeping financial ramifications.
The company also recently became a member of the 21 EOS block producers (BPs). EOS had faced a multitude of issues since its mainnet launch last month. There are widespread concerns about a lack of decentralization in the project. Reports emerged recently that stakeholders were trying to create a new constitution for the project.
Will Bitmain be able to control 51 percent of the Bitcoin network hashrate? Do you think Bitmain will be able to dominate the EOS mainnet? Keep the conversation going in the comment section below
Image courtesy of Blockchain.com.