If MicroBT is indeed listed on the NASDAQ, the company will become the third Chinese mining hardware manufacturer to go public on the US stock market.
The Chinese manufacturer of ASIC devices for cryptocurrency mining, MicroBT, is planning to list its shares on the NASDAQ stock exchange. Sources familiar with this issue told the portal 8btc about this.
Read Bloomchain through your favorite social networks: Telegram, VK, FB
MicroBT was founded by Yang Zuoxing, a former Bitmain Lead Designer. It was he who was responsible for launching the AntMiner S7 and S9 miners, the sale of which brought the company a total of about $ 2 billion. In 2016, Zuoxing tried to become a partner of the mining giant, but was refused. Then he founded his own business.
Despite the fact that MicroBT is a fairly young company, 8btc calls it the second largest player in the Bitcoin mining equipment market. According to the research department of BitMEX, in the period from 2017 to 2019, the company actively conquered the market, taking most of its customers from Bitmain.MicroBT is now looking to raise public capital to meet mining companies’ demand for equipment. The company considered the possibility of going public in 2019, but for unknown reasons abandoned this idea. She may have found other sources of funding. In particular, according to 8btc, in January 2019 MicroBT attracted about $ 700 million from investors.
Another possible reason is being sued by Bitmain. The latter began civil proceedings against MicroBT back in 2017. The company alleged that Zuoxing had violated a patent for the production of mining equipment. In October 2018, MicroBT won the lawsuit and canceled Bitmain’s patent through the Intellectual Property Court.
In December 2019, Zuoxing was arrested by the Chinese authorities on charges of embezzling 100,000 yuan (more than $ 14,000). The details of the case were not disclosed then, however, market participants associate the persecution of the head of MicroBT with the competition against Bitmain.
Recall that over the past couple of years, two mining companies from China have entered the public market. On November 21, 2019, Canaan Creative held an IPO on the NASDAQ stock exchange, during which it managed to raise $ 90 million.On June 26, 2020, Ebang entered the NASDAQ listing – during the placement it received $ 101 million from investors.
The debuts of the companies cannot be called successful: Canaan shares lost more than 40% of their value by the end of 2019, and Ebang securities fell in price by 14% on the first day of trading. However, manufacturers have now strengthened their positions.
Against the backdrop of a long rally in bitcoin, the value of Canaan securities almost doubled – to $ 5.5 per share (which is still less than the IPO price). Ebang shares also rose in price: the paper traded at $ 6.14, which is 17% above the offering price.