Why Bitmain is Staring at a Dim Tomorrow
Giant crypto mining firm Bitmain might be staring at a tough future ahead. Despite the plunge of cryptos in 2018, makers of mining chips are having a hard time too. Apart from mining, Bitmain has made a name as a manufacturer of integrated circuit chips used in mining rigs.
However, Bitmain market command might not last long as new firms are coming up with focus in manufacturing chips. Experts are now questioning how competitive are Bitmain’s chips.
In 2017, the Beijing company was a market leader controlling over 80% of chip manufacturing. However, come 2018, Bitmain failed to regain market control after different companies cropped up like Ebang International Holdings and Canaan.
Bitmain main profits come from mining and entrance of these firms means that revenue has been cut. Already, we have talk that Bitmain suppliers should stop doing business with the troubled firm. Additionally, Bitmain is believed to have a big stake of Bitcoin Cash. The acquisition might affect its overall value considering that BTC has declined since May.
Despite the negative developments, Bitmain is in the process of launching an IPO aiming to raise $3 billion.