Bitmain Lost More Than $625 Million, Hopes On New Tech To Turnaround

Bitmain lost more than $625 million in the first two months of this year but it still remains positive that the new technology will help it to turnaround based on the high demand for the new 7nm mining machines as we can read in the coming altcoin news below.

According to a report from the Chinese news outlet, the total operating income for the first quarter of Bitmain was about $1.082 billion dollars and with revenues split over the three months as $253 million, $253 million and $579 million. In the first two months of 2019, the company lost more than $345 million and $280 million but in March Bitmain posted a profit of $215 billion. Still, Bitmain lost more than $310 over the Q1 which is not a good look for the company. The loss was down to the outdated 16nm mining rig inventory which was sold at very low prices.

Despite the Q1 losses, Bitmain expects a better performance in H2 once the old stack is cleared and the company starts selling the new 7nm machines. Bitmain also placed a huge order for the 7nm chips from the Taiwanese Semiconductor Manufacturing Company whit a lead time of 3 and 4 months. The company expects cash flow to steadily increase in Q3 because advanced orders are expected and then an explosive growth in the earnings as well. The company also expects a huge growth in profits on its artificial intelligence line of products.

As we can read in the best cryptocurrency news sites, Bitmain still has to post some improved results if it wants to attract investors to its IPO. The company revived its IPO plans for the United States after the original filing in Hong Kong lapsed. Bitmain had a very bad year in 2018 when the prices fell across the crypto markets and it even took an ill-advised gamble on bitcoin cash. This was considered as good news because the mining became more decentralized and the mining dominance of the company dropped. The upturn in the bitcoin fortunes has also helped the company to recover with some of the sources saying that the staff options were completed already with the revival of the IPO.