A well-known cryptocurrency analyst and Partner at Placeholder Venture Capital, Chris Burniske, last year said in a statement that the bitcoin mining industry is set to generate profit? of $3-$4 billion. Here’s a story about the company that generated profits of $3-4 billion in 2017 by selling hardwares and managing mining pools.
Based out of China, Bitmain Technologies Limited, raked over $3-$4 billion in profits during that period. In addition to selling mining hardware, ASIC chips, the company offers mining pools for miners.
Recently NVIDIA came up with their report, recording ~ $3 billion in net profits during the same period, making Bitmain almost equivalent to the giant chipmaker. It took almost 24 years for NVIDIA to get a profit this big, but only one-sixth of the time for Bitmain.
How Bitmain Works?
The company first launched its mining hardware by selling ASIC claiming to mine bitcoin 50 times faster than traditional video cards. The company manufactures and sells Antminer machines costing from hundreds of dollars to thousands.
Bitmain also operates mining pools cutting down the mining costs by allowing miners to collaborate with each other.
Most of the company’s profits were recorded by the sale of mining rigs. The analysts at Bernstein say that the company has a good cash position to help it through the slow periods during the wild swings of the industry. With authorities putting tougher restrictions for investment in cryptocurrencies and ICOs, a slow period is expected for the same.
Bernstein Analysts estimate that the Chinese company may be holding between 70 to 80 percent of the total Bitcoin mining market share. The company launched mining pools in April last year and is currently opening mining farms in Canada and Switzerland. The company is further expanding business and is going to provide hardware and services for mining other cryptocurrencies like Ethereum and Monero. Â
