Sequoia Capital and IDG to Invest in Bitmain the China Bitcoin Mining Giant
Sequoia Capital and IDG Capital are investing in Bitmain Technologies Ltd., based in Beijing, the world’s largest bitcoin mining organisation.
Bitmain, manufactures chips and machines for bitcoin mining and operates its own mining plants, which has benefited from the increase in the market value of the currency, now about 75 billion dollars. Bitmain told Bloomberg TV in August that its own rating is “in billions” and is considering an initial public bid.
Bitmain is raising $50 million in funding. These funds will be used to expand their research firm AI, So far, Sequoia Capital and IDG Capital have already committed themselves to this funding cycle. It is an interesting development to see a Bitcoin manufacturer exploring the opportunities of artificial intelligence that is currently one of the hottest technology industries.
Bitmain and its founders have been central actors in the drama that has played in the last three months around the bitcoin currency. Today, what was once known as bitcoin has become two different systems: the original bitcoin and a splinter fraction called bitcoin cash.
Wu defended the idea of increasing the size of network blocks that were previously limited to 1 megabyte to allow faster transactions, however, critics pointed out that this would further strengthen the miners’ powers, which could have a negative effect on regular consumers.
Having the company’s focus on IA can be the best possible result for the moment and it will certainly be interesting to see the evolution of the IA market with the entry of this new competitor.