Bitmain Files for US IPO with the SEC Despite Chaos in Management

Its application to list its stocks in Hong Kong lapsed in March.

Crypto mining hardware maker Bitmain Technologies has filed for an initial public offering (IPO) with the United States Securities and Exchange Commission (SEC), Tencent News reported on Wednesday.

Citing anonymous “informed sources,” the report detailed that the German multinational banking giant Deutsche Bank is sponsoring the prospect of the Chinese hardware manufacturer.

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The report, however, did not specify details like the amount the mining giant is looking to raise.

Bitmain approached the US market after a failed attempt to publicly list its stocks on the Hong Kong Stock Exchange. According to the previous filings, the company was seeking to raise $3 billion in the Asian market, but a Bloomberg report earlier this year revealed that the company is planning to raise between $300 to $500 million in the US offering.

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Moreover, to increase the chances of getting listed on the US exchange, the Chinese giant hired Zheng Hua, the former representative of Nasdaq China, as a consultant to the company, the report detailed.

The review process by the US financial regulator will have three inquiry rounds and will last for an estimated period of at least one to two months.

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Meanwhile, Canaan Creative, Bitmain’s rival in the industry, also approached the US market and filed for an IPO, seeking to raise up to $400 million. Like Bitmain, Canaan also approached the US market after failing to list its stocks not only in Hong Kong but also in mainland China.

Though Bitmain is pushing to list its stocks publically, there is a power struggle going on with its management. The company recently ousted its co-founder Micree Ketuan Zhan from the position of executive director, while another co-founder Jihan Wu took up his role.

Earlier this month, the company opened a 50 MW crypto mining facility in Texas and has plans to expand the facility to 300 MW, making it the largest crypto mining facility on the globe.

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