Leading cryptocurrency mining hardware manufacturer, Bitmain is said to have filed an application for its IPO (Initial Public Offering) with the U.S. SEC. According to Tencent News, Deutsche Bank is the sponsor of the Bitmain’s application.

Bitmain had a failed attempt for its IPO with the Hong Kong stock exchange where they were targeting a raise of $3 billion. As per the recent report from research firm Hurun, Bitmain is one of the 11 unicorn blockchain startups with a valuation of $12 billion.

Why Bitmain IPO with the Hong Kong exchange failed:

Bitmain filed first with HKex in Mar 2018 hoping to raise billions of USD. If successful, it could have been one of the largest crypto-related IPO. However, things took a worse turn during the 2018 Bitcoin bear market. Bitcoin prices dropped by 85%, impacting Bitmain operations.

Other reasons cited for the likely reason for Hong Kong exchange not to list Bitmain IPO was a lack of crypto regulatory framework. Additionally, the unfamiliarity of the crypto industry with the larger population.

Bitmain’s U.S. IPO strategy:

In order to increase the chances of listing in the U.S. stock market, Bitmain has hired a former Nasdaq China representative, Zheng Hua as a consultant to the firm. Additionally, Bitmain has also reduced the fundraising target in its U.S. IPO plan.

As per the earlier Bloomberg reports, the firm may aim to raise $300-$500 million from the offering. Bitmain rival Canaan has also filed the application for IPO with the U.S. SEC targeting a raise of $400 million from the offering.

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