Bitfury Considering Going Public, Targets $3-$5 Billion On IPO

Bitfury is exploring the possibility of going public. According to media reports, the cryptocurrency mining startup is in discussion with investment banks as it eyes an Initial Public Offering. Such a listing would be the first in Europe’s burgeoning cryptocurrency sector.

Bloomberg reports that the firm is considering listing in either Amsterdam, London or Hong Kong.  In addition, the company is also exploring a range of options. Some of the options include pursuing debt financing or a minority stake sale. The firm is however yet, to reach a final decision on the matter.

Bitfurry could seek a valuation of $3 and $5 billion on its proposed initial public offering according to people with knowledge of the matter.  However, the estimates could change depending on how the sector performs after the recent sell-off.

Bitfury faces an uphill task to carry out an Initial Public Offering. A number of investment banks have shied away from providing much-needed advice on IPOs in the sector. Uncertainty over cryptocurrency’s future as well as the lack of uniform regulation are some of the significant headwinds clobbering the sector.

However, the same has not stopped large institutions from pursuing investment opportunities in the sector. Fidelity Investments is one of the institutions that has already created a division for managing digital assets.  Goldman Sachs has also teamed up with former partners Mike Novogratz, and invested in cryptocurrency custodian firm BitGo Holdings.

Bitfurry won’t be the first Cryptocurrency firm to seek Public listing, Beijing based Bitmain Technologies holding has already filed for an IPO in Hong Kong.  Bitmain is widely expected to raise $3 billion from its IPO. That said, it would be interesting to see what Bitfurry would raise from its offering considering its sales are a fraction of Bitmain sales.

Bitfurry generated sales of about $450 million for the 12 months ended March. In the wake of cryptocurrency prices tumbling, the company has had to venture into other sectors for growth.  For starters, it has started manufacturing computer chips for mining machines.

Bitfurry also develops Bitcoin blockchain software in addition to developing infrastructure that enables BTC mining.  The company has also come up with a more efficient algorithm that enables easy routing on the Lightning Network. The company also boasts of large institutions as well as governments as some of its biggest clients.