Bitmain, one of the largest companies in the cryptocurrency industry, has opened an office in Silicon valley ahead of a planned initial public offering (IPO) this year.
The Silicon Valley Business Journal reports that Chinese manufacturer mining equipment arrived at office premises with an area of 20,000 square feet in downtown San Jose, California, occupying the last available space in the office building Riverpark Towers. This city has long been a hub of technology startups such as Okta, Cohesity and WeWork.
Extension Bitmain and its emergence in Silicon valley is not surprising. After a round of financing of $400 million last year, currently, the firm is estimated at $12 billion. This makes it not only the most expensive cryptocurrency company, but also one of the most expensive high-tech startups in the world. According to reports, the firm believes that in the near future it can reach a cost of $40 billion.
And while decentralization is the main mantra of the cryptocurrency community, the companies of this industry still tend to cluster around the same geographical locations, and the broader technology industry.
In this case, the purpose of the extension may consist in the intention Bitmain to improve the management of its growing digital Empire. The company provides targeted expansion in North America (partly due to the uncertain future of the industry in China), opening mining centers in Washington state and in Quebec.
Bitmain has also started to make major investments in other technology start-UPS, and moving to Silicon valley, of course, will benefit the venture team.
As reported earlier this year, Bitmain led the funding round, investing $110 million in Circle to create a competitor Tether. The company has teamed up to work on a joint project to create a token, provided the us dollar.
Bitmain recently invested $50 million in the Opera browser, having a controlling stake in the company. Although the Opera is only a small niche in the Western world, it is widely used in Africa. Shortly after Bitmain has invested in Mozilla, the company announced that integrates its own Ethereum wallet in the web browser.
Just this week, Bitmain, along with PayPal co-founder Peter Thiel (Peter Thiel) led the round of funding, blockchain startup Block.one, the Creator of the cryptocurrency EOS. The size of the funding were not disclosed.
However, despite all their investment activities, Bitmain is not the first month is in the center of the scandal relating to the centralization of Bitcoin mining. Owned by Bitmain pools BTC.com and Antpool, according to the statistics of mining operations in June 2018 produced about 27% and 15% blocks of the network, respectively. Although Bitmain claims that the operation of these pools are independent from each other, the potential for full network management of one company is a weighty concern of the community members.
In this regard, in the beginning of the month, with the support of some of the developers of Bitcoin Core was launched a nonprofit Foundation PoWx. The objective of the Fund is development of the idea that the algorithm proof of work (PoW) acting in the blockchain of Bitcoin can be replaced by a newer and presumably more advanced algorithm — «optical» proof of work. In the new algorithm is more energy-efficient laser technology is used as a cornerstone of mining cryptocurrency. It is expected that this will help to reduce the centralization of mining, which is mostly responsible Bitmain.