According to the Chinese news outlet QQ, Bitmain did not have a very good start to the year. The first 2 months of 2019, saw the Chinese ASIC manufacturer lose the staggering $625 million.
The report states that the firm suffered losses of $625 million by March. $345 million of those were recorded during January, and $280 million during February.
These disappointing results were apparently due to the questionable sales of the obsolete 16 nanometer ASICs for very low costs. Apparently Bitmain decided that it was a good strategy to fully clear their inventory of the outdated ASICs before beginning the sales of the new 7 nanometer mining rigs.
Chinese ASIC manufacturer data shows huge growth opportunities ahead
Bitmain gross profit margins are expected to steadily climb up to 30% in April on account of the sales of the 7 nanometer ASICs. Toward the end of March, the firm declared that its 7 nanometer Antminer S17 would be fully ready for launch by early April.
It was recently revealed that Canaan Creative, one of Bitmain’s local rivals was the first ever Chinese mining company to file an IPO request with regulators from the United States.
Bitmain also seems to be currently revisiting its plans for an IPO as the crypto market has slowly started to climb back up again. The Chinese ASIC manufacturer was initially aiming to raise up to $3 billion via a possible listing on the Hong Kong Stock Exchange.
If the IPO happens in the United States however, this target will be drastically reduced to between $300 and $500 million.
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The post Chinese ASIC Manufacturer Bitmain Lost $625 Million appeared first on CoinStaker | Bitcoin News.
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