Company Bitmain Jihan Wu and Zhang Mikri founded in Beijing just four years ago. During its existence, Bitmain has not only become one of the largest miners of cryptocurrency, but has become a significant player in the market of specialized equipment for mining. It produces and sells ASIC miners and run their own mining pools, while continuing to rapidly increase their income. So, according to the estimates of independent analysts, in 2017 the company managed to earn more than NVIDIA.
Conservative estimates put the gross income at 75% and operating profit of 65%, analysts were able to calculate that the mining company last year made a profit of $ 3.5- $ 4 billion. According to their estimates, the profit NVIDIA for the same period amounted to $ 3 billion. The analysts of Bernstein company noted that most of the revenue Bitmain have been obtained through the sale of ASIC-miners, and the remainder earned from mining crypto-currencies and provision computing power for rent. At Bernstein believe that in 2018 the company’s revenues will remain at the proper level, but in the long-term growth is in doubt, because the cryptocurrency market is very unstable.
“However, to achieve such performance, Bitmain took only four years, whereas NVIDIA could achieve the same results by spending six times more time,” noted Bernstein.
The company’s revenue growth last year was largely due to the increase in the price of Bitcoin, but analysts noted that Bitmain is trying to regulate prices on their own equipment, which largely depend on the quotations of cryptocurrency. With the increase in the price of Bitcoin has increased significantly and the price of AntMiner S9, although the production costs of ASIC-miners remained the same.
Experts believe that benefit Chinese companies and the expansion to which she started recently. When the Chinese government decided to restrict the activities of mining companies in the country, Bitmain paid attention to other cryptocurrencies and opened branches in Canada and Switzerland.
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