Cryptocurrency related IPOs are being more an more common every time: with the application of Bitmain in Hong Kong, the rumor of Bitfury also submitting an IPO prospectus, and the latest news about Coinbase also planning to run its own IPO, it has become something of a trend these days. From hardware mining manufacturers to exchanges, the IPO offers are varied and seem to imply that cryptocurrency enterprises are searching mainstream investor support.
IPOs Implies Going Public
IPO means Initial Public Offer, the process of an enterprise to emit shares and go public, exposing and selling his idea to the world. In contrast to an ICO (Initial Coin Offering), the IPO process is regulated and there is a lot of audit and bookmaking processes going on in parallel at the same time.
This means that a for a company to file an IPO prospectus (the application to go public) it needs to be a solid and legit company in the books. It needs to be a great idea or business that has already been proved successful, albeit in a small or limited way.
That is why IPOs are made: you raise a company and you hit a wall, and you sell a stake in your company in exchange for funds to keep growing up. So going public is a big deal for any company and more for cryptocurrency companies that have been seen traditionally as shady and non-regulated startups.
Cryptocurrency Related IPOs
For a market as unstable and prone to manipulations, the cryptocurrency startups have relied lately on the ICO model: raise an idea and crowdfund money in exchange for tokens that will give users certain options inside the platform. But this model, as lucrative as it could be for enterprises and investors, does not give the buyer much of a guarantee of the platform completion per se.
But, more and more cryptocurrency related IPOs are being presented and also are being rumored by recognized people. The Bitmain IPO filed in Hong Kong features the world’s biggest cryptocurrency hardware manufacturer offering people and investors the chance of hopping into the cryptocurrency van without investing in cryptocurrencies.
It is a very ambitious public offering because Bitmain has already posted winnings of more than 1.1 billion just in the first quarter of this year in part due to the growth of the cryptocurrency market prices that made mining hardware sell like hot cakes.
Bitfury, another cryptocurrency mining company, is also rumored to be filing for an IPO very soon. And the breaking story that Ryan NeuNer has reported today, is that Coinbase, one of the most influential American cryptocurrency exchange, is going to file an IPO very soon.
This is a very convincing reason to believe that the cryptocurrency business in this companies is very solid because, for the filing of an IPO, these companies need to open their books to possible investors to figure out the initial price of the stock and the possible demand. So cryptocurrency companies are going legit and public, despite all the babble from Wall Street.