Tag: Bitmain

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Bitmain, Bitcoin (BTC) Mining Rigs Manufacturer, Reported Losses In Q2 2018

The Chinese Bitcoin (BTC) mining equipment manufacturer Bitmain introduced an Initial Public Offering (IPO) application on the Hong Kong stock exchange, in which it confirms losses of $395 million in the second quarter of 2018, after almost surpassing its net profit for the whole of 2017 in Q1.

In the application for the IPO, Bitmain reveals its business figures until the second quarter of 2018

After doubling its sales in 2016 compared with 2015, and almost multiplying them by 10 in 2017, the Chinese manufacturer obtained more revenue in the first half of 2018 than in the whole of 2017, as shown.

The losses are attributed to the drop in the price of Bitcoin (BTC) in 2018, about 67%, from its January 2018 peak of $19,608, to its current value of around $6,500. This notorious decrease affects the profitability of Bitcoin (BTC) mining, although it is known that miners, in general, do not stop investing in better equipment.

Bitmain was already preparing its IPO, with some incidents such as leaked documents about its assets in cryptocurrencies, or support publications from other companies that were later rejected, although it finally formalized the IPO request this Wednesday.

The drop in Bitcoin (BTC) price affected Bitmain revenues in Q2 2018

The sharp rise in the price of Bitcoin (BTC) in 2017, which led to an increase in Bitmain sales at the beginning of this year, also led to the rise in the price of Bitcoin (BTC) mining equipment as demand exceeded supply. In the second quarter of 2018, that dynamic is reversed, as Bitmain had acquired a large inventory of ASIC chips and components to increase production and much of the equipment was not sold.

Bitmain confirms the decline in prices in 2018, comparing the average price of its equipment sold in the first half of 2017 with the average price in 2018, from $1,191 to $972. The cause of the decline, Bitmain says, is the decline in the expected return per unit of one mined Bitcoin (BTC).

As for its cryptocurrencies holdings, the Bitmain IPO filing does not specify the amounts for cryptos the Bitcoin (BTC) mining equipment manufacturer has, but it points out that it fell from $1.172.4 million in T1 to $886.9 million in T2, possibly linked to the decline in the price of BCH in that period.

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Bitmain Might Be Losing Its Dominance In The Crypto Mining Market, According To A New Report

The bad news keeps coming for Bitmain, one of the largest companies in the crypto mining universe. After a couple of weeks of questioning about the transparency of its operations, a report has now been published that the Bitcoin (BTC) mining giant may be losing its technological edge to its competitors.

The report, released this week, on Wednesday, informs about an investigation conducted by Sanford C. Bernstein & Co. The study, led by Mark Li, notes that “Bitmain cash flow appears to be questionable, and the company may be gradually losing the technological advantage.”

Analysts pointed out that the company’s revenue in 2017 was below the firm’s estimates, which was because part of the production was kept in Bitmain inventories, instead of being sold to customers. However, they acknowledge that, despite the losses, the Asian company’s profits remain “remarkably high.”

The report also questions the future competitiveness of Bitmain chips, as it “failed on a 10nm chip and possibly on other projects.” That means that its competitors could now reach the current technological level of Bitmain, according to the report.

Additionally, the study pointed out that the startup’s significant stake in Bitcoin Cash (BCH) faces a depreciation risk because “BHC is illiquid and has depreciated by almost 20%” since Q1 2018.

Bitmain might lose its dominance in crypto mining

Through the report, analysts recommended Taiwan Semiconductor Manufacturing Co. (TSMC), which produces chips designed by Bitmain, the leading Bitcoin (BTC) mining equipment manufacturer, “to require the company to make full prepayments and to refrain from adding capacity only for the demand related to cryptos.”

In the light of these shortcomings, some observers wonder whether the recent substantial investments made by Bitmain to diversify it would be a sign of weakness rather than strength.

It is possible that the acquisition of a stake in the Opera browser and the investments in Block.one’s EOSIO protocol, as well as the blockchain Lambda storage programme, are the result of the decline of its core business, crypto mining.

There has been much talk recently that Bitmain, the company founded by Jihan Wu, is raising funds for an Initial Public Offering (IPO) on the Hong Kong Stock Exchange. However, some of the reports on large companies, which have allegedly participated in previous rounds of funding, have been denied by the firms involved.

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Bitmain IPO Concerns The Cryptocurrency Industry

The crypto mining equipment manufacturer Bitmain remains focused on its Initial Public Offering (IPO) as criticism raises the alert on its financial prospects.

As Bitcoinist announced in late-July, the company reported that it plans to conduct an IPO of $14 billion by the end of this year, after earning more than $1 billion in Q1 2018.

In the meantime, pre-IPO investor offering data has given rise to concerns about Bitmain’s financial outlook, focusing in particular on its massive Bitcoin Cash (BCH) stocks, which may not be liquid until the markets are converted before the IPO launch date.

“According to Bitmain’s investor deck before the IPO, they sold most of their Bitcoin (BTC) for Bitcoin Cash (BCH),” stated on Twitter Samson Mow from Blockstream.

The pre-ICO data issued in the past week suggests that several sources have argued that its level of investment in BCH may ultimately scare off the investors who are aware of Bitcoin Cash (BCH) liquidity status and the role of Bitmain in its safekeeping.

Bitmain IPO concerns the cryptocurrency industry

While Bitmain staff, among them the CEO Jihan Wu, is still hesitant to disclose the less complimentary second-quarter results and the alleged “secret” mining, analysts appear to concur that a bullish market for cryptocurrency would probably fix the liquidity issues.

“Bitmain will not launch an Initial Public Offering (IPO) until they have favorable market conditions, which means that there is likely to be a bullish market approaching the actual date of the IPO,” reads a blog post on this topic, published on Medium.com.

“However, once it is made public, shareholders will want to know why Bitmain continues to siphon off profits to underpin a failing currency and how they intend to liquidate their massive position in Bitcoin Cash (BCH),” affirmed Vijay Boyapati, a software engineer.

In conclusion, the Bitmain IPO (Initial Public Offering), expected to raise $14 billion by the end of the year, concerns the cryptocurrency industry due to the massive Bitcoin Cash (BCH) the crypto mining equipment manufacturer holds.

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Bitmain Crypto Mining Company Launched Its New Litecoin (LTC) Mining WiFi Router

Bitmain crypto mining equipment manufacturer announced the launch of Antrouter R3-LTC WiFi Litecoin (LTC) mining device.

The Antrouter R1, announced on July 4th, with a price of $39 and a hash rate of 1.7 MH/s, has a much lower performance than the Antminers equipment dedicated exclusively to mining. This machine cannot work in the Antpool mining mode, which supports the P2P mining protocol and it forces Bitcoin (BTC) mining in standalone mode.

Antpool, as Bitmain said on Bitcointalk.org, brings together the hash power of several miners and directs it to their servers, to be used in a collaborative mining task.

Consequently, because of its moderate hash rate, the chances of mining LTC are minimal.

The Antrouter R3-LTC, announced by Bitmain on July 18th and designed to mine Litecoin (LTC), is based on the ASIC BM1485 chip. It contains six of these chips, capable of delivering a hash rate of 9.9 MH/s and consumes 23.2 watts, according to specifications.

Bitmain launched its new Litecoin (LTC) mining WiFi router

In a review, this Litecoin (LTC) mining WiFi router has a noise level of 50 decibels at a one-meter distance, at an ambient temperature of 30 degrees Celsius, measured in a quiet room.

“It is highly doubtful that anyone would want to have such a noisy WiFi router on their desk, even if it is used for Litecoin (LTC) mining,” as reported on Bitcointalk.

In September 2015, Bitmain had made its debut into this type of mining-capable WiFI router with the Bitmain R1, which was designed to mine Bitcoin (BTC).

Bitmain has between 70% and 80% market share in the Bitcoin (BTC) mining equipment market and, in just four years of existence, managed to match and exceed the operating profits of established companies in the graphics card market like Nvidia, according to a report by analysts at Bernstein Research, the leading US research and brokerage firm on Wall Street.

In April, Bitmain crypto mining equipment manufacturer launched its first mining team for Ethereum (ETH).

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Bitmain Crypto Mining Equipment Manufacturer To Expand Its Operations In Brazil And The USA

The company that manufactures equipment for the cryptocurrency mining, Bitmain, announced the opening of a new office in Brazil and, according to other information, is also setting up a new office in the Silicon Valley, California, in the United States.

The information on the expansion plans to South America was confirmed by the company, which indicated that the new office in Brazil would be destined only for the sale of equipment. Bitmain’s general manager of communications, William Davidson, said the company’s operations would not initially be large or linked to the installation of crypto mining farms, but rather to technical service activities.

The Bitmain executive said a single office would be opened in the city of Sao Paulo, but did not provide details on the local staff that might be required to begin operations in the South American country.

Bitmain crypto mining equipment manufacturer to expand its services to the USA

At the same time, the Silicon Valley Business Journal reported on July 16th the recent establishment of Bitmain in the Silicon Valley, California, where offices of approximately 1,858 square meters were installed. The crypto mining company is said to have filled the last vacancy in the city’s Riverpark Towers office building, known as the hub of many new technology companies.

This information is circulating shortly after the announcement of the strengthening of Bitmain’s workforce in Israel, where 40 new professionals will be hired for developing a center in the city of Ra’anana in the Central District. There Bitmain will recruit blockchain researchers, senior software and security engineers, as well as marketing staff, Python and JavaScript programmers and quality control staff.

Also, last February, Bitmain opened a technical support office in Irkust, Russia, one of the largest cities in Siberia and one of the most attractive areas in the world for crypto mining thanks to the cold climate. According to media reports, the idea is to attend more directly to the needs of the growing market in that country and to provide support to all Russian residents who need to have their ASIC devices manufactured by Bitmain repaired.

With this new move, Bitmain crypto mining equipment manufacturer aims to expand its services in South America and the USA.

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