The leading manufacturer of Bitcoin mining equipment Bitmain suffered losses in the first two months of 2019 totaling $ 625 million. Nevertheless, the company expects that high demand for new 7-nm devices will allow it to finish the year with positive results, writes Cryptoglobe with reference to local media.
Thus, according to WeMedia , with total operating income in the first quarter of $ 1.082 billion, in January and February, the Chinese company was forced to start selling outdated equipment (16-nm) at low prices, resulting in a loss of $ 345 million and $ 280 million respectively.
This was partially offset by revenues of $ 315 million in March, but in the first three months, the company's total losses amounted to $ 310 million.
Bitmain expects positive results in the second half of 2019, when the old equipment should be completely eliminated and the company will begin selling new 7-nm devices. It is reported that the manufacturer has already made a large order for 7-nm chips from Taiwan Semiconductor Manufacturing Company (TSMC) with a delivery time of 3-4 months.
The company also expects that in the third quarter, as orders for new devices arrive, the cash flow will gradually increase, and the explosive growth of income will begin after the first deliveries.
Positive financial results will also be extremely important for attracting new investors, if Bitmain, who had previously intended to go public in Hong Kong, will be expected to submit an initial public offering in the United States.
Note that the company additionally expects an increase in revenues from sales of products targeted at the industry of artificial intelligence. Thus, in the first quarter, Bitmain launched the BM1684 cloud chipset product line, which brought about $ 4.61 million in profits in the first three months of 2019.
Subscribe to the BlockchainJournal news in Telegram: BlockchainJournal Live – the entire news feed, BlockchainJournal – the most important news and polls.
BlockchainJournal.news
BlockchainJournal.news
