Is Bitmain Doomed? Notorious S7 And S9 Antminer Developer Could Depart for Rival Shenma
“Bitmain is doomed”. You have possibly read that last year. Bitmain was once the kind of crypto companies but it seems that its fame and success were actually pretty short-lived after all. Due to the pressure of the bear market (and, according to some, numerous internal issues), the company has been losing a lot of money and credibility in the market.
The company even went as far as to try to go public on the Hong Kong Stocks Exchange (HKEX), but they seemed to have utterly failed in that.
At the moment, the market is full of speculation about what could happen to the company as the Initial Public Offering failed, not many products are being released and Bitmain is reportedly distancing itself from Bitcoin Cash (BCH).
Now, BTC King 555 (@BTCKING555), a well known Twitter-based crypto insider which generally have all the hot takes on Bitcoin has affirmed that Taiwan Semiconductor Manufacturing Company (TSMC) did not give Bitmain capacity. According to him, TMSC is more interested in its 5G customers and Bitmain has ruined its own reputation, which made it a “low priority” for TSMC.
He also affirmed that the upcoming Antminer 17 will have a very limited capacity and that some sources also affirmed that Dr. Yang, responsible for the creation of the very successful S7 and S9 Antminers has decided to leave the company.
Yang will reportedly start working at Shenma, which currently has a better chip on 8/10nm nodes. He claimed that
“Letting Dr. Yang and his team go was probably as dumb as selling all of the BTC and going all in for BCH.”
Bitmain Is Facing Some Very Tough Times
Once the bitcoin mining leader, Bitmain is far from having a good time now. The CSO of Blockstream, Samson Mow, has affirmed in March that Bitmain was facing several lawsuits and that the company was very deeply in debt. In order to raise capital, the company was trying to take some of its new S15 miners and demo them to investors in order to raise capital to keep afloat.
If these allegations were actually true, then the problem is only getting worse for Bitmain. With the company so deep in debt already and without any kind of way to basically be very profitable again, Bitmain could even go bankrupt.
The company will not be able to manufacture so many mining rigs and it is losing key partners and employees, which could mean a disaster for it. Bitmain could be in trouble now and the rumors of insolvency might be starting to be more relevant now. All of this also hinges on the fact that the price of bitcoin has obviously dropped from near $20K USD all the way to $3,100s during this prolonged bear market which BCH has suffered a near worse fate since.
At the moment, it is not clear which of these allegations are true, but if at least half of them are right, Bitmain may be about to face its most difficult time ever.