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The move of MicroBT to go public in the United States will be a big win for the ambitious company amid the growing demand and the ongoing rise in the adoption of Bitcoin by institutional investors.
Chinese based cryptocurrency mining rig manufacturer MicroBT is reportedly to go public in the United States through an Initial Public Offering (IPO). The news which was first broken by Chinese crypto blogger Colin Wu did not specify the projected IPO timeline for the Whatsminer manufacturer but noted that the firm has seen remarkable growths in the past year with the potential of shoring up its revenue to $1 billion by the end of 2021.
“Whatsminer, the second-ranked bitcoin mining machine manufacturer, is preparing to go public on the Nasdaq to obtain more funds to buy Samsung chips to make more machines, three sources told Wu Blockchain. After goes public, the market value may exceed tens of billions,” Wu revealed via a tweet.
The Chinese MicroBT firm will be the third company in the same line of business in the region to scale the business up to accommodate public investors. Other Chinese-based mining rig manufacturers that have gone public in the United States include Ebang International Holdings Inc (NASDAQ: EBON) and Canaan Inc (NASDAQ: CAN) respectively.
The demand for mining rigs has surged in recent times with the majority of these rig manufacturers seeing their orders completely booked creating a dearth in the supply of the products. MicroBT has worked its way up the ladder and is now one of the most acclaimed rig manufacturers, despite being one of the youngest players in the field. Per the reports, the firm is set to conduct a new funding round before the proposed Initial Public Offering. This funding round will help the firm accrue enough liquidity to aid in the manufacturing of new units of its flagship Whatsminer in order to meet its growing demand.
Chinese MicroBT Ahead of IPO
The brewing plans by the China-based MicroBT has met with an initial impediment when in 2019, it made an attempt to file for the IPO. The impediment was largely due to a legal brawl between MicroBT and Bitmain, one of the largest rig manufacturers in China who alleges that the founder of MicroBT, Yang Zuoxing, who also is the former director of its Chip design was guilty of intellectual property (IP) theft.
Yang was arrested in connection to this case in December 2019 but released on bail a month earlier according to a report from Technode. While Yang has reiterated that the IP challenge with Bitmain had been resolved, more recent reports suggest ongoing disputes over patents, this time with mining company Ebang over the ASICBoost patent.
Following all these challenges, the proposed eventual success of MicroBT to go public in the United States will be a big win for the ambitious company amid the growing demand and the ongoing rise in the adoption of Bitcoin by institutional investors around the world.