Bitmain which enjoys the major monopoly in the bitcoin mining industry made a huge profit last year which was a mammoth amount of almost $4 Billion. A report released by Bernstein analysts estimates that the Chinese startup made around $3-4 billion last year solely by selling their mining equipment and also by mining cryptocurrency.
When it comes to cryptocurrency mining equipment, any serious cryptocurrency miner would tell you that Bitmain is the one and only company in the cryptocurrency mining equipment space and it would be difficult to find any other major player in this space.
Analysis by Bernstein gives an estimate that bitmain made around $3 to $4billion last year which was at par with the 24-year-old company Nvidia, while bitmain achieved that in just 4 years. Hats off to bitmain it took the leap of faith in the cryptocurrency equipment space and now enjoys the monopoly in this niche.
In 2013, Wu and Zhan went against the naysayers and went on to build the largest cryptocurrency mining equipment company. Major of their profits came in the last 12 months as the price of bitcoin grew exponentially. They mostly took payments in bitcoin and bitcoin cash.
Bitmain’s hardware does most of the talking and they had nothing to say to Bernstein’s earnings estimate and reports. Bitmain’s ASIC manufacture dominates 70% of the market and bitmain has been immensely profitable in the last year, as its antminer went from $100 to $5000. Antminers price went up in response to bitcoin’s price hike. The cost of manufacturing stayed the same they had a huge profit margin.
Bernstein report also predicted “Bitmain will likely lead the cryptocurrency ASIC industry and migrate some of its chips to 10nm and the most advanced 7nm. That will make the company one of the top five users of TSMC’s 7nm in 2018, with demand comparable with Qualcomm’s, HiSilicon’s, or AMD’s.”
Bitmain is maintaining its power by opening mining farms in Switzerland and Canada. Bitmain is also mining Ethereum and Monero which is expanding their business even more. This analysis also further claims that the sales of their mining equipment made most of their profit and the rest they generated through mining and charging management fees from the mining pool they operated.