Bitmain Reportedly Lost $625 Million by March, Expects Q4 Turnaround
Bitmain reportedly posted a $625 million loss for the first two months of 2019. The company is said to be anticipating that the poor performance will be offset by a flood of demand for its 7nm miners during the fourth quarter.
Bitmain Posts $310 Loss for Q1
According to a report by Chinese news platform, WeMedia, the company sustained losses of $625 million by March, losing $345 million and $280 million during January and February of this year. The poor performance was purportedly driven by the sale of outdated 16nm miners, which fetched a meager price ticket during 2019.
After posting a $315 million profit during March, Bitmain ended the first quarter with a lossof $310 million in total. Despite the hefty loss for Q1, Bitmain registered $1 billion in assets and 16% debt ratio. Spectators have also speculated that the bullish performance of the crypto markets during 2019 may have also offset the company’s losses.
— CryptoGlobe (@CryptoGlobeInfo) July 4, 2019
Bitmain Predicts 7nm Miner Sales Will Drive Strong Performance
Bitmain reportedly anticipates a strong performance during the second half of 2019, with the company’s yet-to-be-released 7nm miners expected to generate a flood of sales late in the year.
During July, unconfirmed reports claimed that Bitmain had ordered 30,000 7nm wafers from the world’s largest semiconductor manufacturer, Taiwan Semiconductor Manufacturing Company (TSMC), in an order estimated to be valued at $300 million The source of the rumor was an “industry insider” posting on Weibo.
Bitmain expects to have strong cash flow during the third quarter owing to advance payments for its 7nm mining rigs. With TSMC expected to required three to four months in order to mass-produce the 7nm chips, Bitmain is anticipating dramatic sales during the fourth quarter one it has made its first major shipment of 7nm miners.
AI Products Expected to Contribute to Revenues
Bitmain is also expecting its growing line of artificial intelligence (AI) products to comprise an increasing source of revenue for the company. During the first quarter, Bitmain launched three products equipped with the BM1684 cloud chip, generating approximately $4.61 million in revenue for the company during Q1 2019.
During June, BItMEX Research identified that Bitmain’s mining pool, Antpool, after the BTC network rejected a block after it had been mined at 4:35 UTC, June 10. The rejection of the block canceled the 12.5 BTC (approximately $146,000) reward that appeared destined for Antpool.