Bitmain incurs a loss of $310 million in 2019 Q1
|- The firm's decision to clear its inventory of 16nm mining hardware could be the main reason for the loss.
- With the new 7nm ASIC line, the gross margin of the firm is expected to go up by 30% in April figures.
The largest manufacturer of ASIC-based Bitcoin miners, Bitmain Technologies, has suffered a net loss of $310 million in the first quarter of 2019. The firm had made a profit of $315 million in March. However, the net profit went down due to the $345 million and $280 million losses it suffered respectively in January and February.
A report by Tencent's QQ reasoned that the loss happened because of the company's decision to clear its inventory of 16nm mining hardware. Nevertheless, Bitmain is expecting profits from sales of its new line of 7nm ASIC-based miners. It's noteworthy that they are the only firm that's mass-producing the 7nm ASICs.
The report also said that in the first quarter of the year, Bitmain's operating revenue was $1.082 billion – $253 million each for January and February and $579 million in March. Gross margins for these months were $7.91 million, $14.7 million and $25.21 million respectively. With the new 7nm ASIC line, the gross margin of the firm is expected to go up by 30% in April figures.
Bitmain has been trying to go public. Its application for a public listing with the Hong Kong Stock Exchange (HKEx) lapsed earlier this year. The exchange was reluctant to list any company with business entirely based on the crypto economy.
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