Bitmain the leading Bitcoin mining company and ASICS hardware producer, has
filed a draft IPO prospectus to the Hong Kong Stock Exchange. The IPO document reveals that Bitmain is a hardware company. Many assumed that mining was a major source of its profits, but it doesn’t appear to be.
Three highlights in the figures. Firstly the growth in the second half of last year was exceptional. From the first half (H1) to the second half (H2) hardware revenue grew 825% to $2 billion. For hardware (only) that’s down to 31% from H2-2017 to H1-2018. Still respectable.
Secondly, the growth doesn’t look so rosy when you look at gross profit. From H1 to H2 of 2017 gross profit on hardware increased 819% to $943 million. But in H1 2018 hardware gross profit is fractionally down to $941 million compared to H2 of 2017. And the total gross profit is down 5%.
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