Bitmain is betting on Bitcoin Halving pump
|- Bitmain has come up with three tactics to restore its fading market dominance.
- The company is planning to give out a put option to those who make product orders in large quantities.
Bitmain hosted a customer event on Saturday in Chengdu, China, in which Wu appeared on the stage as the first time as CEO and the sole chairman a month after regaining control. He presented a few strategies to restore Bitmain's fading market dominance. He urged sway miners to stick with Bitmain's products by having the firm take on the risks related to Bitcoin price volatility, cash flow and electricity costs.
Bitmain predicts that Bitcoin's price will surge coming year amid the upcoming halving of mining rewards, which will reduce new supply created with each block of transactions. According to CoinDesk, Bitmain has rolled out three tactics to appeal to mining investors. For instance, users who pre-order 100 to 999 miners can put 50% down, while larger investors buying over 5,000 units can pay a minimum 20% upfront. The remaining payment needs to be made seven days before the actual shipment date.
The second tactic targets people who own mining farms with power resources but don't possess enough equipment to run at full capacity. Bitmain said that it will offer a co-mining agreement that runs over a year for mining farm operators to rent its flagship AntMiner S17 or T17 products. Bitmain would cover the year-round electricity costs while the operators take care of maintenance. In return, Bitmain will retain 75% of the profits. The presentation deck showed that if the mining revenue is less than the electricity cost, then all the mined coins will go to Bitmain.
Furthermore, Bitmain is planning to give out a put option to those who make product orders in large quantities. This is expected to ease mining investors' concerns regarding Bitcoin's price volatility.
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