Home Market News Crypto Bitmain Is Losing Monopoly Over Currency Mining

Bitmain Is Losing Monopoly Over Currency Mining


Bitmain is a China-based currency mining machine. They have achieved a legendary status when you look at the industry at the moment and there is also a lot of mystery when you look at the operation in general. The company have really made the right moves and now they are one of the biggest and even the most profitable currency businesses around. It does seem right now that they are slowly falling apart and people do seem to be turning against them.


There has been a report from the research firm that states that Bitmain happen to be losing their advantage which lies solely within their technology. Their competitors are no longer producing the mining chips and when you look at the analytics you will see that they control 85% of the currency mining equipment that is on the market at the moment. Some of the other companies that are working in the industry include Canaan Inc and even Ebang INternatonal as well. The Beijing company was founded by Jihan Wu. He is a 32-year old billionaire. They need to write down the value of the inventory and they also need to do it as makers of the rival mining gear as well. The analysts have stated that the Taiwan Semiconductor provides and produces chips that are fully designed by Bitmain. They have asked the company to make full prepayments and they have also asked them to refrain from adding more capacity just for the demand that is coming from those who use cryptocurrency.


It is also worth noting that Bitmain happens to make most of its profits from selling the equipment in question. The other sources of revenue are actually minor when compared to the currency itself and the management fees that they charge and even the mining pools that are present are all rented out through cloud services. When you look at the report that was created by Bernstein you will soon see that the claims are true. This would certainly explain why Bitmain are having to take such drastic steps and it would also show why the controversy struck as well. This all happened in March this year and they had to sell $12,000 of their own mining equipment just so that they could buy XRM.

They also purchased a range of other privacy oriented coins because they know that their coins will  become obsolete by the time that everything actually ships.


Over the last year, it seems as though Bitmain’s own focus happens to have moved from focusing on selling the equipment to having a much more diversified portfolio. They have taken an interest in mining the currencies themselves as well and they have a $500 million farm in Texas. Bitmain have also invested in EOS and even payments as well. They have a stake in Opera and they have a decentralised exchange known as DEx.top. This is all according to the CEO Jihan Wu. They have stated that 40% of the profit that could be coming from Bitmain could actually be coming from selling the AI chips and this is also from the mining equipment as well.


When you look at the fact that Bitmain are sternly focused on making mining equipment, it isn’t hard to see why they are trying to create a profile that is diverse and they are trying to do it in a very short space of time. BItmain’s own public offering has raised a lot of concerns about where they stand financially and it isn’t hard at all to see why this is somewhat concerning. The IPO is expected to reach around $18 billion and investors look to be taking it all into account., Reports have surfaced that some banks have taken part in the pre-IPO but both companies have now fully denied that they have any involvement with it. This does raise some concerns  but it is important to know that things could change yet.




Please enter your comment!
Please enter your name here