Crypto Chronicle
  • Home
  • News
  • Bitmain Market Dominance in Question
Mining News

Bitmain Market Dominance in Question

market dominance on red key

The world’s largest producer of cryptocurrency mining equipment may lose its market dominance according to new research by Sanford C. Bernstein & Co.

The report, published on Wednesday, suggests that the current bear market has reduced mining hardware sales to the point where it may become unprofitable to continue development.

Bitmain, which was recently valued at $12 billion, holds approximately 85 percent of the cryptocurrency mining market has recently announced it will be holding an initial public offering (IPO). Q1 profits for 2018 were reported by Bitmain to be $1.1 billion but the companies profits since may well be significantly lower.

Analysts for Sanford C. Bernstein & Co also noted that the mining giants considerable hoard of Bitcoin Cash (BCH) could present a “major risk” going forward. Bitcoin Cash developers are currently in the middle of a disagreement regarding the future of the network, posing a possible fork of the network into two incompatible blockchains.

Last week, documents were leaked from Bitmains pre-IPO investor deck earlier this year showing the company is holding over one million BCH. These assets will have decreased in price considerably since the documents were made, causing around $300 million in losses.

The report goes on to note that Bitmain’s main semiconductor supplier, Taiwan Semiconductor Manufacturing Co, should request full advance payments and be wary of increasing production of cryptocurrency mining hardware.

Reports earlier this week suggest that two companies said to have invested in Bitmain’s pre-IPO round, Softbank and Tencent, have now denied any involvement with the company.

Image From Shutterstock

Related posts

Introducing Instant: The Seamless Token Purchase Platform from 0x

Mark Hartley

CoinShares’ Chairman Danny Masters expects Bitcoin Surge

Mark Hartley

KuCoin Lists 0x Token (ZRX)

Mark Hartley

Leave a Comment

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.