One of the largest Chinese manufacturers of mining equipment Bitmain suffered significant losses in the first quarter of 2019, according to local publication QQ.
According to the publication, during the specified period, the company received only $1,082 billion in operating revenue. However, in January and February, the losses of the mining giant amounted to $345 million and $280 million, respectively. At the same time, Bitmain made a profit of $315 million in March. Thus, for the first quarter of 2019, the company suffered losses of $310 million.
According to media reports, during this period, Bitmain had to liquidate outdated 16-nm miners at reduced prices, which was the main reason for financial losses. However, the company is confident that the situation will normalize in the second half of this year, when new batches of 7-nm miners will go on sale. Now the mining giant is waiting for the delivery of a large batch of 7-nm chips ordered from the Taiwanese semiconductor manufacturing company TSMC in the middle of last month. The expected delivery time is 3-4 months.
Bitmain expects that cash receipts will increase in the third quarter, when preliminary applications for new equipment will begin to arrive and deliveries will begin. The company is also betting on the Sophon product line focused on the artificial intelligence industry. Positive results in the second half of the year will increase the chances of Bitmain conducting an initial public offering (IPO), which will presumably be held in the United States