Chinese cryptocurrency hardware maker and miner Bitmain Technologies Inc. is going public, filing paperwork today for an initial public offering with The Stock Exchange of Hong Kong.

Founded in 2013, Bitmain manufactures its own cryptocurrency mining equipment and also operates the world’s largest bitcoin mining operation. Mining involves computers processing transactions on the bitcoin blockchain with a reward of new coins.

According to the filing, Bitmain booked $2.51 billion in revenue in 2017, up from the $278 million a year earlier. The company reported a $952.5 million profit last year versus $113.5 million the year before.

If those figures aren’t remarkable enough, CNBC reported that Bitmain made $742.7 million in profit during the first half of this year on revenue of $2.8 billion with adjusted return on equity coming in at 58.8 percent.

The company has boomed on the surge of interest in cryptocurrencies. Bitmain primarily makes cryptocurrency mining equipment as well as managing its own mining pools, meaning that it both benefits from those looking to buy hardware as well as from using its own hardware, in conjunction with others, to mine for cryptocurrency.

As was apparent when reports first emerged of the IPO in July, it’s difficult to pin down exactly what Bitmain’s market share of cryptocurrency mining equipment is, but about 70 to 80 percent is often mentioned. Its closest dedicated mining equipment competitor, Canaan Inc., filed to go public in May, but Bitmain also competes with companies such as graphics chipmaker Nvidia Corp. as well.

While highly profitable, Bitmain has one long-term risk: a possible major correction or crash in the cryptocurrency market. Already, most major cryptocurrencies are down by as much as two-thirds from their peak at the end of 2017. Although they’re still more valuable than 18 months ago, the slide could go further.

Bitmain held $886.9 million in cryptocurrency as of the end of June, 28 percent of its total assets. That means a rapid price decline would also see that number plunge. But more important, if cryptocurrencies crash, so to does the demand for the mining equipment Bitmain sells.

Image: Bitmain