Blockstream’s Samson Mow Blasts Bitmain: Deep in Debt with Lawsuits and Unpaid Production
Bitmain has come out completely undone. Back in February, the largest crypto mining equipment maker reportedly made a loss of $0.5 billion in 2018 which has been due to the loss in a crypto bear market that reduced the demand for its mining rigs.
The privately owned company, Bitmain technologies that is headquartered in Beijing, China specializes in designs that are application-specific integrated circuit chips for Bitcoin mining.
With Bitcoin price crashing over 80 percent from its peak at $20,000, it did a number on its business which had the company seeking an IPO. Recently, the company released its more efficient 7nm chips and a new Antminer B7 96KHS ASIC Miner.
In the light of all the events, Samson Mow, the CEO of Blockstream took to Twitter to point all the things happening with the technology company.
“Bitmain already facing multiple lawsuits and more being filed. Their assembly, component, production, and repair companies are unpaid and losing patience. Seems Bitmain is deep in debt and trying to raise new capital from unwitting investors to keep going.”
According to Samson Mow, selling the S15, of which were made only about 1000, at a loss that is 30 percent below its cost was actually a bad idea.
1/ Bitmain already facing multiple lawsuits and more being filed. Their assembly, component, production, and repair companies are unpaid and losing patience. Seems Bitmain is deep in debt and trying to raise new capital from unwitting investors to keep going. #BitmainIPO pic.twitter.com/fBlSulRaRG
— Samson Mow (@Excellion) March 10, 2019
Moreover, the cost for 7nm chips is about three times that of 16nm chips while their yield is “very bad” with only 60 percent of them being viable.
“From what I hear, Bitmain is cherry picking good chips from the tape-out to create demo miners to show to potential investors. It’s all a fancy magic show because their actual yields are so bad that mass production would never be economical. But that’s not their only problem…Sources at TSMC say that this year they have no real 7nm capacity available for crypto ASICs. 7nm capacity is all sold to Apple, Qualcomm, Huawei, Nvidia, AMD etc.”
“To sum it up: lawsuits from unpaid suppliers, their 7nm process is not viable, selling S15 at a loss, new S17 is a magic show, looking for newbie investors, and TSMC has no capacity for them to tape-out chips even if they wanted to.”