The largest mining company in the world, the Chinese Bitmain, has decided to publish regular reports on the size of its mining operations. This is part of a broader transparency initiative which will be used to open the company up before going public later this year with the Initial Public Offering (IPO).
The Bitmain In-House Bitcoin Mining Stats
According to the statistics that were released by the company, as of July 22, Bitmain only has 4% of the Bitcoin hashrate, which is surely something that will raise eyebrows among the Bitcoin community. The data states that the company owns three mining algorithms: SHA256 (1,692 PH/s), Ethash (339.7 GH/s), and Scrypt (44.2 GH/s).
It is not disclosed how much or which coins the company is mining and the hashrate distribution. However, even if all the power of the SHS256 ASIC miners was directed at BTC mining, it would be only 4% of the network’ hashrate, which is currently 41.83 EH/s, according to official data.
These figures are not audited, so while this is “official” information, it might be a biased one. Critics of the company have affirmed that Bitmain conceals most of their mining power and that they already have almost half of the control of Bitcoin and perhaps even of some other blockchains already.
This report does not take into account the subsidiaries of the company, which account for close to half of the hashrate, according to the US media. It can be argued that Bitmain only controls these networks by dictating the blocks that they can mine, though.
Bitmain Denies Secret Mining
Jihan Wu, the CEO of Bitmain, is a fierce defender of its company and believes that he has been unfairly accused most of the time, as no secret mining operation is being held. According to him, Bitmain has zero tolerance with mining equipment that has not been released to the general public and only test unreleased material in small batches.
Also, the company has denied that it has been mining empty blocks with no transactions on them, only the rewards. Critics accuse the company of mining these blocks to increase the network congestion. The company’s official response is that it will investigate empty blocks and disclose publicly the reasons if there is a real problem.
Bitmain’s goal is to have more transparency now that it is planning an IPO, so you can expect Jihan Wu to appear in the media more right now. As the company has recently raised $400 million USD and it is being valued at $12 billion USD, it is preparing to go public on the Hong Kong Stock Exchange this year.
This way, it will raise another $1 billion USD and increase its value to $15 billion USD, which would put it on pair with another semiconductor giant, AMD.