Showing renewed optimism, Bitmain is increasing its investments in the crypto mining industry. Now, Bitmain is reportedly buying 600,000 new crypto mining chips. As a result of this new investment, the company expects to make over $1 billion in profits.
Bitmain to Increase its Capacity By 50% Hash rate
The battle to produce fast cryptocurrency mining gear is heating up. In this context, Chinese Bitcoin mining giant, Bitmain Technologies Ltd, is placing orders for new mining machines with high hash rate capacity.
In this connection, and according to a Chinese news outlet, “Recently, a supply chain person close to TSMC broke the news.” This source reported that Bitmain has recently placed new orders for 600,000 mining chips.
As Bitcoinist reported earlier, Taiwan Semiconductor Manufacturing Company (TSMC) is Bitmain’s chip supplying contractor. TSMC ranks as one of the most profitable chipmakers in the world.
Moreover, according to the same source, some of these chips include the latest 7nm model, with a single power of 50 Tera hashes per second. The recent Bitmain order also comprises 16nm model chips.
Therefore, within a few months, observers believe that Bitmain’s total network computing power could skyrocket by about 50%.
Company Hopes to Reach a Valuation of $12 Billion
Despite losses in the first quarter of 2019, which reached approximately $625 million, Bitmain remains optimistic about the strengthening of the mining industry. In effect, with this new investment, the company expects to hit a valuation of $12 billion.
Last February, Bitmain announced its next-generation 7nm ASIC chip, BM1397, which boasts improvements in performance and energy efficiency. These chips are designed to mine cryptocurrencies using the SHA256 algorithm for proof-of-work purposes, such as Bitcoin and Bitcoin Cash.
Moreover, the Antminer models come with enhanced hash rate capacity. Last April, the chipmaker announced the specifications for the latest 7nm Antminer 17 series. For example, the Antminer 17 Pro comes in two variants, a 53 TH/s and a 50 TH/s capacity models.
In addition, according to Bloomberg sources, Bitmain is working with specialists to prepare for a U.S. share sale that could occur as soon as the second half of 2019.
What do you think about Bitmain’s new investments in crypto mining? Let us know in the comments below!
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