• 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.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

XRP drops below $0.3000, ETH at risk of an extended correction

BTC/USD hit the intraday low at $11,086 during early Asian hours and recovered to $11,226 by press time. The first digital coin has stayed mostly unchanged on a day-to-day basis and since the beginning of the day, moving within a short-term bullish trend amid shrinking volatility.

More Bitcoin News

XRP/USD under $0.3000 after Ripple announces the investment in XRPL Lab

Ripple's XRP dropped below $0.30 after a failed attempt to settle above $0.3200 during early Asian hours. The coin has lost over 4% in the recent 24 hours and stayed mostly unchanged since the beginning of the day. 

More Ripple News

Leading blockchain auditing firm predicts Cardano will outperform Tezos

ADA/USD bulls remained in control for the third straight day and the price is consolidating in a pennant formation. It’s current priced at $0.1443. The Elliott Oscillator has had seven straight red sessions.

More Cardano News

Altcoin Market Update: ETC and XLM face continual bearish correction

ETC/USD bears stayed in control for the fourth straight day. ETC/USD is currently priced at $7.13. The sellers are looking to get the price below the $7-level.The RSI is trending horizontally around 59.46.

More Cryptocurrencies News


Bitcoin Weekly Forecast: Fasten your seatbelts, next stop is $12,000

Bitcoin has had its best week since mid-2019. The first digital currency gained over 18% in a single week and hit the new highest level of 2020. At the time of writing, BTC/USD is changing hands at $11,358 and the upside momentum is gaining traction as Bitcoin bulls are pushing at the upper line of the weekly Bollinger Band. 

Read the weekly forecast