The return of co-founder Jihan Wu is stimulating Bitmain, which is a privately owned company headquartered in Beijing, China that designs ASIC chips for bitcoin mining, to take up new strategies for its sale and to restore Bitmain’s warning market dominance. The newly CEO wants to retain miners with Bitmain’s products and thus the company will embrace risks like cash flow, volatility and so many. Bitmain’s expectation is the jumping of bitcoin’s price after the 2020 bitcoin halving but actually it is questionable because sometimes expectation works against the clock.
At a customer event hosted by Bitmain on Saturday in Chengdu, China, Bitmain has basically rolled out three main tactics to appeal to mining investors. According to the new sales strategy, customers had to pay the full amount upfront for mining equipment because of future shipment. It is hoped that the newly strategy will result in shifting the short-term cash flow pressure away from customers toward Bitmain itself.
Those who own mining farms having power resources can’t run because of lacking of equipments to them Bitmain’s another plan is about to roll out. For them, the firm is to offer co-mining agreement to rent its flagship AntMiner S17 or T17 products covering the year-round electricity cost at 0.35 yuan per kilowatt-hour.
The revenue of the Bitmain is that it will retain 75 percent of the mining profits and the farm operators will take the remaining 25 percent. The company is more focused on selling equipment and further Bitmain could increase its capacity in mining for itself. But reportedly it is known that Bitmain decreased its self-owned bitcoin hash power to a certain extent.
Presently Bitmain is willing to giving out put a option to those who make product orders in a large quantity to ease mining investor’s concerns about bitcoin’s price volatility.
It is questionable that whether the strategies will see success but it is expected that the strategy will increase competition in the mining business. Wu in a meeting talked about the declining situation of Bitmain’s market dominance in mining equipment and mining pool hash rate in this year and the CEO wants to bring a surprising move indeed. The competition among miners in China is still on top with the intention to 2020 bitcoin halving. For example MicroBT launched a new line of products boasting a hashing power of 88 tera hashes per second. Another largest miner maker Canaan completed its IPO raising $90 million in new capital.