Bitmain Company is set to expand its Bitcoin mining operations globally. This is according to a statement given by its co-founder Wu Jihan. As per now, the company is operating two mining farms that are at ten and 12 megawatts. However, the company is set to launch more facilities in the US after it was given the green light to set up cryptocurrency operations stateside.
There are two cryptocurrency mining facilities already being developed and they are past the early stages. The facilities are set to be complete by mid-2018. It is yet to be known how many facilities the company will launch in the US but it is known that the firm will spend more than $100 million to expand the company’s operations in the US. According to the revelation by Jihan, the firm also has plans to venture into artificial intelligence (AI) sector in the US.
Why the US market
The US market is significant for the firm as it is the second biggest market for Bitmain services after China. The company has big expansion plans for this market. The firm hopes to increase its clients in this market as the US market has a lot to offer concerning a high-growth market. However, despite the potential for growth in the US market, there are high mining costs involved. According to Jihan, the entering of Bitmain into the market will increase competition and hopefully lower the mining costs. Additionally, the expansion plans will increase revenue for the company and create more job opportunities for US citizens.
The strong performance of the cryptocurrency market and the increased growth of Bitcoin and Litecoin has seen the company’s profits rise over the years. Bitmain also produces mining rigs for most major proof of work altcoins. The firms turnover was at $2.3 billion in 2017 and its operating profits was more than $4 billion last year.
Earlier in the year, the firm also announced that it is developing a new ASDIC Antiminer E3 that will be launched later in the year. The Antiminer will increase the hashing power in the firm’s mining operations and will be more efficient. The Antiminer will be used for Ethereum mining.
Canaan Creative also has expansion plans
Bitmain is not the only firm that has plans to expand its cryptocurrency mining operations. Canaan Creative, which is the second largest crypto mining firm in China after Bitmain, also has plans to expand its mining operations. In 2016, the firm was valued at $523 million and unaudited reports of the firm show that it made $64 million net profit in 2017. According to the firm, it produces 20 percent of the Bitcoin mining rigs sold globally. Most of the remaining market share belongs to Bitmain.
According to a recent announcement made by the company, it is set to launch an Initial Public Offering (IPO) that will be launched on the Hong Kong Stock Exchange (SEHK). If the launch is a success, Canaan Creative will be the first cryptocurrency company to be listed on the SEHK exchange. The IPO hopes to raise $1 billion. The money will be used to expand the company’s mining operations globally. This means that the competition is bound to get stiffer for Bitmain.