IPO seems to be a major milestone for crypto business now. After Bitmain’s IPO news, Ran Neuner spilled the beans of Coinbase preparing for an IPO. And now according to latest updates, received Cryptocurrency mining firm Bitfury is considering an initial public offering.
Bitfury could launch Europe’s first major crypto IPO
According to the news published by Bloomberg, Cryptocurrency-mining startup Bitfury is weighing strategic options including an initial public offering in what could be Europe’s first major listing in the industry, according to people familiar with the matter.
The blockchain-technology company is exploring a range of options and could decide to raise debt financing or sell a minority stake, the people said.
The is no official announcement made as sources say no final decision has been made yet. If Bitfury goes public in the next two years, it could seek a valuation of $3 billion to $5 billion, though numbers are early estimates and could change depending on markets and the industry, the people said.
Bitfury’s revenue is a fraction of the sales generated by Bitmain Technologies Ltd., the Beijing-based virtual currency mining firm that filed for an IPO in Hong Kong last month. The industry giant may raise as much as $3 billion, people with knowledge of the matter said in August. The companies operate in a volatile market where prices hit a peak last year before a more than $600 billion out in digital assets this year.
Bitfury, a maker of crypto-mining gear that was founded in 2011, posted revenue of about $450 million for the 12 months through March. Chief Executive Officer Valery Vavilov and co-founder Valery Nebesny share a majority stake in the company, Vavilov has said previously.
Where Bitfury stands out in its offering is, that it has garnered attention in recent months for its capabilities in keeping its super-fast machines cool by submerging the computers in a non-conductive liquid at a plant in Georgia and at another data centre it’s expanding. Since its inception as a Bitcoin miner, the London and Amsterdam-based firm has also ventured into other businesses involving blockchain technology, which was developed to keep a digital ledger of cryptocurrency transactions. It also makes computer chips for mining machines, as well as software and counts large institutions, companies and governments among its client base.
As far as the investors are concerned, crypto businesses are slowly gaining traction. It is believed these IPO’s could be overscribed backed on the investment interest shown by hedge funds, family offices and trading firms in the past few months
The traditional financial industry has slowly but gradually started recognizing cryptocurrencies as a viable asset class as its mainstream popularity continues to escalate. The success of these IPO’s would solely rely on this popularity boost even though the industry still awaits a regulatory framework.
Is IPO a better way for crypto businesses to raise capital? Do let us know your views on the same.