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