Bitmain Leak Suggests of Even Lower Results in 2019

Published on N/A by Cryptovest Staff

The leading ASIC producer failed to perform the long-awaited initial public offering, and may have marked even lower results in 2019.

https://twitter.com/btcking555/status/1111500976186368001

The financial results of the company follow a significant decline in prices for older ASIC models, especially the S9 series, which retailed for thousands of dollars during peak mining times. In only a year, the slide in Bitcoin (BTC) prices led to a crash in demand for S9 rigs, bringing their price down as low as $250.

The low financial results, however, arrive at a time when Bitmain is actually expanding its offerings of ASIC. The latest machines include alternative algorithms for networks that are just now picking up a higher hashrate, as in the case of ZCash (ZEC).

Bitmain is going through a critical stage, with analysts seeing the 2020 Bitcoin reward halving as a potential for renewed earnings. The S9 series appeared back in 2016, during the latest halving of BTC, and benefited from the record bull market.

Now, Bitmain will also have to go through with a new CEO at the helm, Wang Haichao, taking over from an engineering position with the company. Former leaders Jihan Wu and “Micree” Zhan Ketuan will remain as advisors and strategists.

Bitmain has not entirely given up on its intentions to renew its IPO application. However, critics see a possibility for a class action lawsuit for the failed investment.

Other positive developments for mining, in general, may be the wet season in China in the coming months. BTC prices around $4,000 are favorable for the low electricity costs, and the coming months may see a pickup in mining. Currently, the Bitcoin network hashrate is around 45 EH/s, remaining near those values in the past months.