Of late, Bitmain the world’s denominated crypto mining giant, has finally handed in its public financial statements to the Hong Kong Stock Exchange. This could be one of the largest IPOs of all time in the crypto world.
Some business insiders indicated that the high-profile IPO is only the first step for Bitmain to open up its AI business. In the financial statement, Bitmain shows its ambition to AI business: the firm identified itself as the second largest fabless IC design company in China (only second to Huawei) and the world’s largest cryptocurrency mining company. It had 85 percent share of the cryptocurrency mining rig market in 2017 according to Bernstein research.
Nevertheless, its co-founder Jihan Wu has a loftier ambition to standing on the top of the blockchain pyramid and to become an AI chip manufacturer, along with the industrial giants such as NVIDIA.
According to revelations by insiders that are close to Bitmain, Jihan’s goal, or his dream, is to lead the firm to realize the curve overtake and become the next NVIDIA. It was also reported that a large portion of this fundraising will be used to enhance their research and development capabilities and expand the production output for high-tech AI ASIC chips and AI applications.
Most people may focus on Bitmain’s profit from mining rigs selling, while the things hiding behind its profit discloses its determination to layout its AI business. According to the financial statement, Bitmain’s Bitcoin R&D costs raked in $87 million in the first half of 2018, increased by 683.8% for the same time period in 2017.
The fund is mainly used for R&D staff salaries, mold costs and R&D expenses. The report shows Bitmain gets over 94% of its revenue from mining equipment sales. Obviously, billions of this money have been used in the AI ASIC chip development.
An anonymity insider disclosed that Bitmain is using its capital gathered from the mining equipment sales and proprietary mining to support the commercial exploration of the new field of AI ASIC chips. Making the breakthroughs one by one in the AI field has become a consensus among executives in Bitmain. In addition, Bitmain has also started a server related business in the field of security and cloud computing.
*Edited based on an article from 8btc.