Two blockchain start-ups offer very different bets on the future of bitcoin mining
Argo offers state of-the-art crypto mining as a service to the little guy but COTI’s trustchain may do away with miners altogether.
Bankers eagerly await the Hong Kong IPO of Bitmain, the dominant provider of computer hardware for cryptocurrency miners which had $2.8 billion of revenue in the first half of 2018. But as they wonder what valuation public investors will eventually put on a company that has already raised $872 million in private funding – with a $422 million venture round completed in August that drew in Temasek Holding among others – let’s not forget Argo Blockchain.
Crypto analysts have at various times in recent months talked up a valuation for Bitmain, which was founded in 2013 and is headquartered in Beijing, of anywhere from $15 billion to $50 billion.
Founded in December 2017, headquartered in London but with most operations in Canada, Argo is a much smaller company, with a market cap a mere fraction of that. But it has already listed on the London Stock Exchange main market, raising £25 million through a placement in August 2018, to build out a new platform.
We’ve had software-as-a-service, banking-as-a-service and blockchain-as-a-service.
Argo now offers mining-as-a-service.
It is in the process of leasing state-of-the-art blockchain mining hardware to build up racks of servers while selling subscription packages for retail users to rent this industrial-scale mining capacity and gain payment in mined cryptocurrencies.