Bitmain has grown to become one of the leading mining companies in the history of the crypto industry. Just last year, the company managed to gather about $50 million in investment from a variety of venture capital firms. At the time, reports from Bloomberg also indicated that the China-based company was looking to not only get its mining infrastructure to the US, but to also venture into the production of chips for artificial intelligence.
A 12 Billion USD Valuation
According to recent reports, Bitmain has managed to close a Series B funding round with a $12 billion valuation from leading investors, including US Hedge fund Coatue, EDBI, Sequoia Capital China as well as from an investment fund backed by the Singapore government. Among the new set of investors in this new round of investment to the mining entity, only Sequoia Capital China has maintained its position.
In fact, Bitmain is reportedly preparing to hold a pre-IPO event and funding round that may lead to the company going public in the near future. If this comes to pass, Bitmain stands a chance of becoming one of China’s largest mining companies.
Bitmain Courting Controversy
On the other hand, Bitmain has been at the center of controversy for quite some time. For instance, in Quebec where there are a relatively low-cost power and adequate conditions for mining, Bitmain has been earlier accused of forcing smaller miners out of business with its huge established infrastructure.
Known for being the largest manufacturer of ASIC mining chips, which are much faster and more energy efficient than graphics cards, Bitmain has found lots of resistance with founders and developers of private centric cryptocurrencies like Monero. The issue has mostly revolved around decentralization, and as developers of crypto projects seek to safeguard decentralization, Bitmain’s unwavering control over the industry has been viewed as a way of centralizing blockchain platforms.
However, now that Bitmain has been given a $12 billion valuation, the company will not only be able to advance its goal for manufacturing AI chips and moving to the US, but might also influence how the cryptocurrency business is conducted.
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