(Yicai Global) Sept. 27 -- Bitmain Technologies Holding, the world's largest producer of crypto mining equipment, has officially filed for its initial public offering in Hong Kong after two of its competitors made similar plans.
The Beijing-based firm, which claims to be the second-biggest fabless chip designer in China, pulled in net profit of USD742 million over the first six months, more than its full-year earnings in 2017, according to the Sept. 26 application.
The company commands about three quarters of the crypto market, but faces stiff competition as it looks to move forward. Compatriot rivals Canaan Creative and Ebang International are also looking to list in Hong Kong as they look to make their mark in the crypto sector, which could see a more than 50 percent surge in trading volume next year, according to Satis Group research.
Most of Bitmain's revenue comes from the sale of hardware for cryptocurrency mining, and it plans to use funds raised in the IPO to conduct research and development and increase production.
The firm also makes microchips for mining and artificial intelligence applications and runs digital currency mining farms, and it has already begun mass producing its second-generation AI chips, according to the application. Co-founder Wu Jihan said in May this year that AI-related income could make up 40 percent of Bitmain's total revenue within the next five years.
Editor: James Boynton