Bitmain Co-Founder to Unleash 100,000 ASIC During Sichuan Rainy Season, Report Says
A Chinese publication says that after leaving Bitmain, Micree (Ketuan) Zhou has become involved with a large-scale mining operation that plans to take advantage of the rainy season.
A new mining operation in China may start affecting the Bitcoin (BTC) network soon as up to 100,000 ASIC rigs are being prepared for the Sichuan rainy season in May, according to a local media report. Led by Jank Group, the new venture is a significant arrival among Chinese miners and counts among its backers Bitmain co-founder and former CEO Micree (Ketuan) Zhou.
The Chinese publication suggests that Bitmain has a share in the mining operation through Fujian Chuangke. This 100%-owned subsidiary gives Bitmain up to 40% of the capital of Jank Group’s mining operation.
Building a new large-scale mining farm may boost demand for Bitmain’s ASIC rigs just as the company is struggling to regain its appeal after its difficulties in the last two quarters of 2018. The launch of the mining farm is also a sign that Zhou remains involved with the Bitcoin business.
The media report arrives after Bitmain underwent a restructuring, dismissing co-founders Jihan Wu and Zhou. The company also fired 30% of its workers, closed its research facility in Israel, and sold some of its digital asset holdings.
However, Bitmain remains dedicated to building newer ASIC models, attempting to stay in the lead as the chief producer of specialized mining rigs.
The coming months may see increased mining activity in China as the rainy season brings cheaper electricity. The break-even price for Chinese miners remains close to the current market price of Bitcoin, meaning the operations may remain relatively profitable.
BTC returned to around $3,895 on Thursday, a value that could incentivize miners. Added to this is the relatively low difficulty of mining, which has sunk to levels not seen since the summer of 2018.
Bitcoin’s current hashrate on the entire network is above 41 EH/s. The Jank operation may produce mining power of around 1.3 EH/s, a small percentage of all activity.