According to an exclusive source, Bit Continent is conducting a pre-IPO round of financing with a US$12 billion valuation of well-known funds such as Sequoia, with a financing scale of US$400 million, which will be delivered within this month. As a global giant in the production of mining machinery, Bitland will be handed over to the Hong Kong Stock Exchange in September this year and will be officially listed before the end of the year. The market value is expected to reach 300 to 40 billion US dollars.
'Blockchain' mining ecology in the world
Bitland is a technology company specializing in the R&D and production of mining machines with high-powered, low-energy custom chips. In simple terms, the extraction of digital currency (such as Bitcoin) requires the use of chips to solve complex mathematics. The problem is that the bigger the computing power is, the lower the energy-consuming chip is, the more efficient it is to do it at low cost.
Bitland has specifically designed ASIC chips for bitcoin mining and packaged them into miners. Currently, Bitland has occupied 90% of the world's miner's market share.
On the basis of mining machine R&D and production operations, Bitland also develops mines, mine pools and cloud mining services. The mine is a low-cost, highly-efficient customized data center, that is, an investor who purchased mining machines. Mineral machines can be placed and operated centrally to reduce management, coordination, cooling, and security costs.
The mine pool concentrates a large number of mining machines to jointly mine, and obtains more stable returns by sharing the benefits according to the computational power. The btc.com and Antpool held by Bitland are the world’s two largest mining pools. Over 40% of network computing power.
The cloud mining service refers to Bit Continental's renting power to players. The latter does not need to purchase, maintains mining machines and consumes electricity, and only needs to participate in Bitcoin mining through the Internet; Bitashland holds Hashnest the largest in the world. Cloud mining service platform.
In short, Bitland has established a complete blockchain and digital currency ecosystem through chips, mining machines, mining plants, mining pools and cloud mining services.
Strong financial data growth
Bitland’s revenue in 2017 is more than 8 times of its 2016 revenue, and its 2017 net profit is 15 times of its 2016 net profit; the data in the first quarter of 2018 is close to the full year data of 2017. Bitland’s gross margin is as high as 60. %.
The reason why the data in the first quarter of 2018 was very strong is because the miner’s market reaction lags slightly behind currency fluctuations for 1 to 2 months due to the need to pay for miners in advance, and the digital currency has risen wildly in the fourth quarter of 2017 and 2017 December currency peaked.
In the first quarter of 2018, the sharp decline in the price of digital currency will affect the data in the second quarter of 2018 to some extent.
Since the second quarter of 2018, the digital currency has stabilized and fluctuate, and the sales of mining machinery have entered a relatively stable period. Therefore, the overall performance growth in 2018 is still very important.
This Round of Pre-IPO rounds of valuation of US$12 billion is only 8 times of net profit of US$1.5 billion in 2017, which is a clear value drop, so it is only open to internal old shareholders.
Sequoia China, Sequoia United States, DST founder Yuri Milner, Singapore government funds, etc. invested 400 million U.S. dollars in exchange for 3.33% of the shares. Investment banks generally believe that the price-earnings ratio of the Bitcoin listed on the Hong Kong Stock Exchange is at least 20 times.
Bit Continental vs Kennan Yuchi
On May 15th, 2018, Jinan Minzhi submitted a prospectus to the Hong Kong Stock Exchange, which impacted the Hong Kong stocks' first blockchain'.
The “Avalon mining machine A841” owned by Kennan Minzhi is a direct competitor of Bitland’s “ant mining machine S9”; and the key of the “ant mining machine S9” in terms of power consumption ratio and computational cost ratio. On the sex index, it still exceeds the 'Avalon mining machine A841'.
Gannan Minzhi first listed on the Hong Kong Stock Exchange, which has positive and negative effects on the Bitland:
On the one hand, Jia Nan’s first listing can probe the attitude and focus of relevant policies on the listing of blockchain and digital currency industries, help the company clear policy barriers, and can also estimate the blockchain and digital currency industry companies. Value logic provides demonstrations;
On the other hand, Kennan Minzhi will, to a certain extent, take away the concept of 'blockchain first stock' and the pursuit of the capital market.
Bitland’s financial data greatly exceeds that of Kennan Minzhi. For example, Bitland’s revenue in 2017 is about 10 times that of Kennan Minzhi; in 2017 Bittern’s net profit is about 20 times that of Kennan Minzhi; 2017 Bit Mainland market share is 10 times that of Kennan Minzhi.
In short, as a benchmarking company in the blockchain and digital currency industry, Bitland's Pre-IPO round of financing and Hong Kong IPO will be greatly concerned by the capital market. How will this super player in the virtual world be in the real capital market? Performance, worth everybody to look forward to.