Singapore’s Bgin Blockchain files for IPO in the US

Singapore-based Bgin Blockchain Limited has officially filed for a public listing in the United States, according to a recent US Securities and Exchange Commission (SEC) filing.

The company, with operating subsidiaries in Singapore, Hong Kong, and the US, specializes in digital asset technology, particularly the design and sale of cryptocurrency mining equipment focused on alternative cryptocurrencies.

 Bgin Blockchain’s strategic emphasis is on mining and selling machines for cryptocurrencies other than Bitcoin and Ethereum, a market segment they believe offers higher growth potential. For the fiscal year 2022, the company generated nearly all its revenue from cryptocurrency mining.

However, since April 2023, sales of their proprietary mining machines, equipped with 8nm or 12nm ASIC chips, have become the primary revenue driver, accounting for roughly 85% of total revenue in 2023 and 66% in the first half of 2024.

Bgin Blockchain’s subsidiaries design and sell mining machines dedicated to KAS, ALPH, and RXD coins, available exclusively through their website, iceriver.io. Customers, primarily based in Hong Kong, the US, and Southeast Asia, can also opt for miner hosting services, where Bgin manages the mining machines on their behalf.

The company has sold over 67,000 mining machines in 2023 and over 47,000 in the first half of 2024. They also operate their own mining farms in the US, alongside utilizing third-party hosting providers.

A key competitive advantage, according to the filing, is Bgin Blockchain’s focus on alternative cryptocurrencies. They employ proprietary cloud-based mining management software to monitor mining results and dynamically adjust which cryptocurrencies to mine for optimal profitability.

This flexibility allows them to quickly adapt to market fluctuations and capitalize on emerging cryptocurrencies. The company claims to be among the top three players in the KAS mining machine market, offering the largest selection of models.

The filing also discloses the company’s significant revenue growth, with revenue having increased by over 1600% from 2022 to 2023, accompanied by a shift from a net loss to substantial net income. This growth trajectory continued into the first half of 2024.

Despite this growth, the filing acknowledges the impact of market events, including the FTX bankruptcy, which resulted in a loss of $1.08 million in Bitcoin. While they don’t anticipate a material impact on daily operations, they are closely monitoring market changes. They also acknowledge risks associated with holding Tether, given its past volatility.