Bitmain Posted Losses of $ 625 million in the First Months of 2019

Mining manufacturer Bitmain recorded $ 625 million in losses in the first two months of 2019. However, the company hopes that demand for mining equipment will increase this year. This will help to recover the economic situation.

Significant losses in 2019

According to the quarterly activity report, Bitmain’s total operating income for the first quarter of 2019 was $ 1.082 billion. In the first three months, the company’s revenues were $ 253 million, $ 253 million and $ 579 million, respectively.

In total, in January and February Bitmain recorded losses of $ 345 million and $ 280 million. The situation improved in March, when the company posted a profit of $ 315 million.

However, a loss of $ 310 million in the first quarter is not a positive aspect for the largest crypto mining hardware manufacturer.

According to the information, the loss was generated by the liquidation of the inventory of old models of 16 nm mining equipment at low prices.

Bitmain expects good sales of new 7nm equipment

Despite first-quarter losses, Bitmain expects strong H2 performance once the company starts selling its new 7nm cars. It appears that Bitmain has placed a large order for 7nm chips from Taiwan Semiconductor Manufacturing Company (TSMC).

The company expects its profits to grow steadily in the third quarter as new orders are introduced for new miners. They also hope for explosive revenue growth after the first 7nm equipment starts to be delivered.

Bitmain is also anticipating an increase in profits on its artificial intelligence (AI) product line.

Possible resumption of IPO plans

The year 2018 was a difficult one for Bitmain. In addition to the significant price drop of Bitcoin, the company has made a tough bet on Bitcoin Cash.

This evolution has made Bitmain give up its original listing plans on the Hong Kong stock exchange.

But this year, rumors have surfaced that IPO plans have been resumed, with the change of location for a US stock exchange.

It remains to be seen, however, to what extent Bitmain’s financial results will improve.