Bitmain Cryptocurrency Mining Company Could Clear $10 Billion in Revenue This Year
Cryptocurrency Mining Company Bitmain May Register $10 Billion Revenue in 2018
Bitmain, one of the most important and known companies in the cryptocurrency world, may be registering $10 billion dollars in annual revenue if the famous virtual currency does not reach new lows.
It is important to mention that Bitmain’s revenue during the last year was $2.5 billion dollars and $300 million the year before. Indeed, the company was able to raise between $300 to $400 million dollars from investors such as Sequoia China.
This is very surprising because the famous platform Coinbase registered $1 billion dollars in revenue during the last year. Another important and known company, Nvidia has also registered a revenue of $3.21 billion dollars during the first quarter of the year.
Bitmain is exploring an Initial Public Offering (IPO) with a valuation between $40 and $50 billion dollars. In the past, some companies that compete against Bitmain tried to raise money through IPOs but all of them are smaller in size.
What is Bitmain?
Bitmain is the most important company selling mining chips to mine Bitcoin and other virtual currencies. The computers Bitmain sells are known as Application-Specific Integrated Circuit (ASIC) and are specifically designed for cryptocurrency mining activities.
The company was created back in 2013 by Jihan Wu and Micre Zhang and they have their headquarters in Beijing.
Cryptocurrency mining activities are very important because they allow the network to process transactions to the ledger in which Bitcoin operates. In order to solve cryptographic hash to identify new blocks, very difficult calculations must be processed by these miners.
Every time a miner finds a block, it receives 12.5 Bitcoins. Every four years, the number of Bitcoin rewarded is reduced. The next halving will see miners receive 6.25 BTC every time they will find a block.
Bitmain does not only sell mining machines but it also runs mining pools. Each of the machines available for purchasing have different functionalities and are designed to mine a specific virtual currency or set of coins. At the moment, it is possible to buy the Antminer S9 for $3.319 dollars.
What About the Future?
The company knows that its future is highly dependent on virtual currencies and how they will evolve. Because of this situation, the company wants to invest in artificial intelligence and other services related to it.
One of the most challenging situations that the cryptocurrency mining giant is facing is that the valuation of the company is based off the price of virtual currencies. The truth is that there is no clear answer about when the market will skyrocket or be in a bear trend for months or even years.
According to Frost & Sullivan, the ASIC market will grow just 57.7% until 2020 compared to 247% between 2013 and 2017.
Bitmain has also decided to invest and produce different chips and not just to mine cryptocurrencies. Furthermore, the company can broaden into all the other SHA256-related coins. They have also informed that they want to build a blockchain data center in the United States in order to expand their business and market.
At the same time, and as mentioned before, Bitmain will be launching AI chips by the end of 2018. The chips are called Sophons and will be training neural networks in different data centers located in different parts all over the world. The main intention for the future is to have 40% of the revenues coming from AI technology.
With its diversification plans and an IPO, Bitmain may reach the $10 billion dollars revenue mark in a very short period of time.