According to a report by Bernstein Research, a Chinese * Bitmain company, which is engaged in mining operations as well as producing Bitcoin mining equipment, reported a profit of $ 3 to $ 4 billion in 2017.
The company, which has undertaken the production of ASIC chips used in Bitcoin mining, is able to increase the price of bitcoin by raising the selling prices of the chips according to CNBC. This puts the profitability of Bitmain, which holds 70-80 percent of the ASIC chip market, into incredible figures.
Bitcoin prices, which were based on the $ 20,000 limit in December, have also supported the company’s profitability. According to Blockchain.info site, the Antpool.com and BTC.com mining pools owned by Bitmain represent 40 percent of the total bitcoin network. In crypto money mining, miners are also rewarded with crypto money as well as transfer fees. In Bitcoin mining this award is now a 10-minute blink of 6.5 bitcoin. Although Bitmain does not receive all of these prizes, he is charged by the miners over the bitcoin in the pools he operates.
Bitcoin has lost almost half its value since then. Prices that are so volatile are of course also raising the profitability of Bitmain. But the biggest risk is not price volatility. The Chinese government has also recently taken concrete steps to curb crypto money activities. For these reasons, the company has announced that it will start to develop and produce chips for artificial intelligence as well as ASIC chips.
* Bitmain has data centers in Mongolia along with China. Aurelien Foucault’s viewing for Quartz
Bitmain’s data center in Mongolia is made up of 8 units, which hosts a total of 25 thousand mining rigs.