Bitmain has announced a new energy efficient Cryptocurrency mining chip. The new 7nm ASIC chip will be used to mine Bitcoin and Bitcoin Cash. However, the company has not said when the new device will be available in the market. Despite the company recording huge profits in 2017 and the first half of 2018, Q3 and Q4 of last year proved to be a little challenging. Given that the Crypto market has been bearish, even manufacturers of mining hardware were negatively affected by the trend.
Bitmain’s Ups And Downs In 2018
2017 was perhaps one of the best years for Bitmain as the demand for Cryptocurrency mining devices skyrocketed. At one time, the company supplied over half of all ASIC mining equipment. This enabled the Cryptocurrency mining giant to capture billions in revenue. In the first half of 2018, the company recorded $1 billion in profits.
However, Bitmain’s glory days did not last forever. As the prices of most coins continued to fall last year, so was the demand for mining devices. Consequently, Bitmain, just like most of the mining companies recorded a significant decrease in revenue. The company has been forced to close some offices and lay off some of its staff.
According to the latest filings, the company recorded revenue of $3 billion and profit of $500 through Q3 (sans Q4) of 2018. However, if the $1 billion profits reported through Q2 of last year is true, then the company recorded a half a billion loss in Q3 2018. These figures show how the bear market has affected companies in the Crypto sector.
Despite Bitmain being a prominent figure in the news last year, it had little to show for in terms of revenue and profits. During Q2 2018, the company started to prepare to list on the Hong Kong Stock Exchange. Despite the time and resources used in the preparation for the IPO, rumors from Hong Kong claimed that they were unwilling to list a Cryptocurrency company squashing any hopes for an IPO.
New Cryptocurrency Mining Chip To Hit Market Soon
Despite facing various financial difficulties, Bitmain is still determined to ensure it has the best mining devices in the market. Taiwan Semiconductor Manufacturing Company (TSMC) upgraded the previous model’s 7-nm FinFET processor to manufacture the next generation 7nm ASIC chip. The new BM1397 chip is designed for Bitcoin and Bitcoin Cash mining. The company has said that this is their most efficient ASIC.
Bitmain has also said that the new mining processor designed for the SHA256 mining algorithm is more power efficient than the 7-nm chips released towards the end of last year. The new chip is part of the upcoming T17 and S17 Antminer models. Nevertheless, no release date or other details about the processor have been released.
Bitmain Responds To Changing Market Conditions
To survive in the new market conditions, Bitmain has implemented various changes apart from the development of the new BM1397 chip. Jihan Wu, the long-serving CEO of the Cryptocurrency mining company recently stepped-down and was replaced from inside the firm. The company has also implemented important changes to its operations. Maybe these changes are what the company needs to remain competitive in the growing Crypto industry.