Chinese Bitcoin mining rig producers planning IPOs in HK: sources

Three of the world’s largest Bitcoin mining equipment makers plan to raise billions of dollars with IPOs in Hong Kong, even as other companies report plunging demand for the chips needed to make Bitcoin and a halving in the price of the cryptocurrency.

Soaring cryptocurrency prices last year triggered a boom in demand for specialist mining chips and in developing “mines,” which are facilities with thousands of machines that create the coins by solving complex mathematical puzzles.

Yet US chipmaker Nvidia Corp said this month that second-quarter sales to crypto miners totaled just $18 million, compared with $100 million expected by analysts.

Nvidia Chief Financial Officer Colette Kress said she anticipated “no contribution” to revenues from cryptocurrency in coming months.

That has raised concerns about the upcoming Hong Kong listings by three Chinese manufacturers of Bitcoin mining equipment, Bitmain, Canaan Inc and Ebang International Holdings.

The companies all design high-end computer chips intended for mining cryptocurrencies, particularly Bitcoin, and sell mining equipment containing the chips. In addition, Bitmain mines cryptocurrencies on its own account. Canaan and Ebang filed plans in May and June, respectively, for offerings in Hong Kong. Bitmain is expected to file its plans next month for an IPO in which it aims to raise at least $3 billion, sources close to the deal said.

Cryptocurrency trading is a global activity, but Chinese chipmakers have led the way in developing the most efficient means to mine the coins.