Chinese Based Bitcoin Mining Firm Raises $350 Million In Q3 Despite Late Chip Supplies From Samsung
MicroBT sells over 300,000 mining equipment units raising a revenue of over $350 million dollars since July 2019.
A Chinese Bitcoin mining manufacturer, MicroBT, expects $350 million USD in mining equipment sales as orders for its new model surge by 200% in October. With over 300,000 units expected to be in operation by the end of the month, these powerful miners are expected to add about 11 Exahashes (EH/s) to the Bitcoin network when fully utilized. However, MicroBT faces a supply challenge in obtaining chips for the miners – as they rely on one supplier.
A Surge in Demand of Whatsminer M20 S
MicroBT, a subsidiary of Shenzhen, released its powerful Bitcoin miner, “Whatsminer M20 S” in mid-July and has since sold over 100,000 units. The company is currently planning to deliver a further 200,000 units ordered before the start of October. The total unit cost of the Whatsminer M20 S series ranges between $1500 and $2000 USD, meaning the total sales for the ordered units range between $300-$400 million USD.
Whatsminer M20 S uses the SHA256 algorithm allowing users to mine a number of coins including Bitcoin and Bitcoin Cash. The profitability of the miner stands at $5.24 USD/day or a total of 0.5BTC every year.
Samsung Chip Supply Problem
MicroBT sales are currently doing well but still some problems persist with its only mining chip supplier, Samsung. In August, some customers complained on the delay of miners expected to be delivered in the July to September period. The CEO and Founder of Shenzhen, Yang Xuoxing, speaking at the New Era Mining Summit was quick to apologize to the customers saying the problem lies with their supplier, Samsung.
“The existing issues with the delay will likely be mitigated by late October. The entirely supply chain should have a primary, secondary and third supplier. This year we only have one supplier so our hands are also tied. Currently, the rapid development of 5G network has resulted in a major delay of the chips requires for the miners.”
The supply shortage of chips means that customers currently ordering the chips will not be able to receive the ordered mining equipment before the Q1 2020.