Bitmain Valuation to Hit $12B With New 600K Chip Order, Source Says
A source close to the mining chip manufacturer involved in the deal confirmed an order for 600,000 7nm units.
Bitmain eyes 50% capacity increase
As reported by Chinese social media network WeChat on Aug. 23, Bitmain, which has seen a dramatic reversal of fortunes in 2019, will now buy 600,000 mining chips.
According to a source close to the Taiwanese chip manufacturer processing the order, the chips will be of the most recent 7nm variety, the hash rate of which will be 50 tera hashes per second.
“Based on this calculation, after half a year, Bitmain’s total network computing power will skyrocket by about 50%,” the publication notes, adding Bitmain’s valuation will subsequently top $12 billion.
Mining operators trickle into the black
As Cointelegraph reported, the increase in Bitcoin mining profitability this year has improved the prospects for operators like Bitmain. In late 2018, pressure was visible, with the company closing down operations and firing staff in some countries.
The impact of the previous Bitcoin bear market lingers on, Bitmain reporting losses of $625 million for January and February.