Bitmain To Be Valued At $12 Billion After New 600,000 Mining Chip Order, Source Affirms
Bitmain is on its way to becoming even more valuable. The Chinese mining giant will increase its manufacture capacity by 50% within the next six months, a source affirms. According to the reports, Bitmain is finally seeing its luck change.
Now, the company is set to buy 600,000 mining chips from a Taiwanese manufacturer. According to the inside sources, these will be 7nm chips with the hash rate of 50 tera hashes per second. The result is that the valuation of the company can rise by 50% within the year if this does really happen.
It was about time for Bitmain. The company had a terrible 2018 and saw most of its plans failing, including its anticipated Initial Public Offering (IPO). The company also has several competitors such as Canaan Creative, which are set to take its place if the company is not able to move fast.
However, the bad streak was ended when the profitability of Bitcoin increased this year. There was a real pressure last year and the company even decided to shut down some branches, but now it is ready to start growing once more.
Unfortunately for the company, though, the impacts of the bear market were still not completely overcome. During the first two months of the year, Bitmain had losses of around $625 million USD and will only start to profit again soon.
Also, the company has been renewing its plans to conduct its Initial Public Offering (IPO). Now, Bitmain is aiming at the U. S. market instead of the oriental one. The plan is to raise $300 to $500 million USD.