Bitmain Said To Complete Series B Round From Sequoia Capital, EDBI And Coatue Management

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Sequoia Capital China has led a series B round between US$300 million to US$400 million in Chinese Bitcoin miner and mining chip designer Bitmain Technologies Ltd., according to Chinese media citing insiders.

Singapore-based investment firm EDBI and American technology hedge fund Coatue Management also participated in the round, according to the report.

Sequoia Capital, EDBI, Coatue Management and Bitmain did not immediately respond to China Money Network’s emails seeking for comments.

Founded in 2013, Bitmain develops and sells Bitcoin miners using its application-specific integrated circuit (ASIC) chip technology. It has offices in Amsterdam, Hong Kong, Tel Aviv, Qingdao, Chengdu, Shanghai and Shenzhen. The firm controls as much as 80% of the market for crypto mining gear, according to Sanford C. Bernstein & Co.

The report said that during 2017 when Bitcoin appreciated, Bitmain booked revenue of more than US$2.5 billion and net profit of more than US$1 billion. The company has experienced the cryptocurrency bear market and is "fully prepared for" the market cycle. People familiar with Bitmain told Chinese media that the company is not losing money but making less profit.

In 2017, Bitcoin raised a US$50 million series A round from Sequoia Capital and IDG Capital. China Money Network has previously reported that Bitmain is considering an initial public offering in Hong Kong or in an overseas market with U.S. dollar-denominated shares.