Tag: Crypto Mining

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.

Anna Galvez

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.

Anna Galvez