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  • Bitmain sticks to positive forecasts despite dismal results.
  • The company set hopes on the new   7-nm devices.

Bitmain, a leading manufacturer of Bitcoin mining equipment, suffered losses in the first two months of 2019 totaling $ 625 million. Nevertheless, the company expects that the high demand for new 7-nm devices will allow it to finish the year with positive results.

Thus, according to WeMedia, with total operating income in the first quarter of $ 1,082 billion, in January and February, the Chinese company was forced to start selling outdated equipment (16-nm) at low prices, resulting in a loss of $ 345 million and $ 280 million respectively.

This was partially offset by revenues of $ 315 million in March. The company’s total losses amounted to $ 310 million in the first three months of the year.

Bitmain expects positive results in the second half of 2019 when the old equipment should be completely disposed and the company will start selling new 7-nm devices. The manufacturer has already placed a large order for 7-nm chips with Taiwan Semiconductor Manufacturing Company (TSMC) with a delivery time within 3-4 months.

The company also expects an increase in cash flow with the growth of new orders.  

Positive financial results are also extremely important for attracting new investors, as Bitmain is expected to submit an application for the initial public offering in the United States.

Note that the company additionally expects an increase in revenues from sales of products targeted at the industry of artificial intelligence. Thus, in the first quarter, Bitmain launched a product line with a cloud chipset BM1684; they brought the company about $4.61 million in profit in the first three of 2019.