Sequoia, IDG to invest in Chinese bitcoin miner

Sequoia Capital and IDG Capital are investing in Beijing-based Bitmain Technologies, the world’s largest bitcoin mining organization, people familiar with the matter told Bloomberg. Bitmain is raising $50 million from several venture firms to boost its profile among mainstream investors, said one of the people, who asked not to be named because the matter is private. Sequoia and the other firms also plan to provide the company with more guidance on management, the people said. Bitmain, which produces chips and machines for mining bitcoin and operates its own mining facilities, has benefited from the rise in the currency’s market value, now about $75 billion. The startup told Bloomberg TV in August that its own valuation is “in the billions” and it’s weighing a possible initial public offering. Bitmain has said that it’s planning to produce chips for artificial intelligence and invest in mining facilities in the US. Bitmain, Sequoia and IDG didn’t respond to email queries about the investment.