Bitmain Eyes 2020 Bitcoin Block Halving as Pivotal Moment for Mining Fortunes
The company thinks an uptick in Bitcoin prices prior to the halving will spur demand for mining hardware.
Disclaimer: This article has been updated to reflect that Bitmain Z11 ASIC miners are for Equihash algorithm coins, not Proof-of-Stake.
Embattled cryptocurrency mining giant Bitmain has allegedly hinted the release of its new mining hardware could hinge on the 2020 Bitcoin (BTC) block reward halving. The news was reported by English-language Asia news outlet South China Morning Post (SCMP) on March 27.
Bitmain, which has seen a testing six months as market volatility triggered redundancies and a failed public flotation, reportedly said next year’s event could reverse its fortunes. SCMP cited a “a company source with knowledge of the plan.”
Block reward halvings reduce the amount of BTC awarded to miners who successfully solve the algorithms to validate blocks of transactions.
In May 2020, the reward size will decrease from 12.5 BTC to 6.25 BTC per block. In line with previous events, sources anticipate Bitcoin prices will increase in advance — possibly beginning around June this year.
“Bitmain is now betting that its next flagship product scheduled to be released by the end of this year will turn out to be a winner in the mining gear market, capturing an expected rally,” SCMP wrote, citing the unnamed source close to Bitmain as saying.
Despite its problems, Bitmain continues to release new products, with the T17 and S17, both of which will utilize its latest 7nm chip technology, currently the focus of attention.
Earlier this month, the company released the Z11, a dedicated ASIC miner for Equihash algorithm cryptocurrencies.
This week, meanwhile, executives claimed its lapsed IPO filing had in fact help deliver more transparency to its public profile.