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BY CNA Team - October 26, 2018

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Bitfury mulls IPO

Sources say Bitfury looking for valuation of US$3bil to US$5bil
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Bitfury, a European bitcoin mining rig producer, is considering an initial public offering (IPO) as one of several avenues for raising capital.

The startup, with offices in Amsterdam and London, is “weighing strategic options, including an IPO that could be Europe’s first large listing in the industry”, Bloomberg reports on Oct 25.

While no final decisions have been made, the newswire quoted sources saying that the startup could be seeking a valuation of US$3bil to US$5bil, although these numbers are early estimates and could change depending on the markets and the industry.

Bitfury also runs its own mining pool, with a hash rate far smaller than Beijing-based mining rig producer Bitmain, which has filed for an IPO in Hong Kong to raise an estimated US$3bil.

According to a Bernstein report from earlier this year, Bitmain had an 85% share of the rig market in 2017 while Beijing-based Canaan, which filed for a Hong Kong IPO in May, had a 10% share.

Another rig producer, Hangzhou-based Ebang, has also filed for an IPO in Hong Kong in June to raise around US$1bil.

The newswire, quoting people familiar with the matter, says Bitfury has reached out to global investment banks to explore an IPO in Amsterdam, London or Hong Kong.

But the IPO is just one option. The people said Bitfury is also exploring other options such as debt financing or selling a minority stake.

Cofounder/CEO Valery Vavilov and cofounder Valery Nebesny share a majority stake in the startup, which posted revenue of about US$450mil for the 12 months through March.

Image courtesy of Bitfury website.

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