Singapore-based cryptocurrency mining rig manufacturer Bgin Blockchain Limited has filed for a U.S. initial public offering (IPO), seeking to raise $50 million as demand for mining technology surges.
The company’s Class A shares are set to list on the Nasdaq under the ticker symbol “BGIN,” according to a Feb. 21 filing with the U.S. Securities and Exchange Commission (SEC).
Bgin plans to issue approximately 59.54 million Class A ordinary shares and 15.69 million Class B shares. The offering is expected to fuel the company’s expansion efforts, with a significant portion of the proceeds allocated to research and development. Investment advisory firm Renaissance Capital has estimated that the IPO could raise up to $50 million.
A Strategic Shift to Mining Rig Sales
Founded in 2019, Bgin initially generated most of its revenue from direct cryptocurrency mining. However, in 2023, the company pivoted toward the manufacturing and sale of mining rigs, a move that has since become its primary revenue driver. The firm specializes in machines optimized for alternative cryptocurrencies, including Kaspa (KAS), Alephium (ALPH), and Radiant (RXD). This shift proved lucrative, with mining rig sales accounting for more than 85% of the company’s total revenue in 2023.
Bgin reported selling nearly 68,000 mining rigs during the 2023 fiscal year. The momentum has continued into 2024, with over 47,000 units sold in the first half alone. Despite this growth, the company disclosed in its SEC filing that U.S. Customs had detained over 2,400 of its mining rigs. The filing did not specify the reasons for the detainment, raising questions about potential regulatory hurdles.
Expanding Mining Infrastructure in the U.S.
Beyond selling mining rigs, Bgin also operates a hosting service for mining operations. The company currently manages over 4,020 mining rigs on behalf of clients, with 3,330 of these units housed in facilities located in Nebraska and Iowa. Its subsidiaries oversee an additional 33,862 active mining rigs across the U.S., while another 12,000 rigs remain non-operational in warehouses in the U.S. and Hong Kong.
Bgin’s expansion aligns with the broader trend of increasing crypto mining operations in North America. The U.S. has become a major hub for mining activity, particularly following China’s crackdown on cryptocurrency mining in 2021. This regulatory shift has led to an influx of mining firms seeking to establish operations in states with favorable energy policies and infrastructure.
Bgin’s Nasdaq filing comes amid a wave of IPO activity in the cryptocurrency sector. Earlier this month, BitGo, a crypto custody services provider, launched a global over-the-counter (OTC) trading desk as it reportedly considers going public. Meanwhile, eToro, a crypto-friendly trading platform, confidentially submitted IPO plans to the SEC on Feb. 12.
Gemini, the cryptocurrency exchange founded by the Winklevoss twins, is also reportedly exploring an IPO, with discussions ongoing with potential advisors. The increasing number of public listings suggests growing institutional interest in cryptocurrency firms, even amid regulatory uncertainty.
