Bitmain is optimistic about the future of the cryptocurrency market. The company is the largest manufacturer of bitcoin mining computers in the world, but has had to surrender some market share in recent years. Time to change the strategy of the company.
Bitmain changes business strategy
Jihan Wu, the co-founder of the company, explained that Bitmain must take risks that they are forced to take. Consider the cash flow, the volatility of the bitcoin rate and the electricity costs. Bitmain expects that the next halving of the reward for miners in May 2020 will ensure that the market will only grow.
In May 2020, the rewards for miners will be halved. That is good news for investors and Hodl’ers, fewer and fewer bitcoins are being added. But for miners this is a bit more complicated. Currently, a miner can earn 12.5 bitcoins per block. That is halved to 6.25 bitcoins.
Pay less in advance
Bitmain responds to this by helping miners to buy new equipment to mine. If they reserve between 100 and 999 miners, it is possible to pay 50 percent less in advance. And are you planning to order at least 5,000 new devices? Then you only have to pay 20 percent in advance.
The rest must be paid seven days before delivery. The idea behind this is that Bitmain largely takes over the financial risk of their customers.
Shoemaker, keep reading
Wu also says that the manufacturer wants to help companies with so-called mining farms and their own power supply, certainly if these companies cannot run at full capacity for whatever reason. Bitmain thinks it can be beneficial to conclude a type of lease so that these companies can use their flagship AntMiner s17 or T17.
In this construction, Bitmain retains 75 percent of the profit and the operator receives the rest.
CoinDesk writes that this contributes to what Bitmain is really good at. In the past few years, Bitmain has mainly sold miners, instead of focusing on what they have grown up with, namely the actual mines.
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