Back in 2018, Bitmain was the hottest crypto mining outfit, controlling close to 50% of the entire Bitcoin network hashrate. However, after a number of poor investment decisions and taking part in the Bitcoin Cash Hash War, Bitmain reportedly lost well over $740 million in the space of a few months. Bitmain then descended into total chaos, firing its CEO, vanishing from the face of the earth and then posting a $635 million loss for Q1 of 2019.
Now, a supply chain and logistics insider from Bitmain has recently leaked information that Bitmain has placed an order with the Taiwan Semiconductor Manufacturing Company (TSMC) for 600,000 brand-new 7nm and 16nm ASIC mining chips. If the specs given in the leak are anything to go by, in 6 months’ time Bitmain could once again reclaim the throne as the most powerful Bitcoin miner.
Bitmain Coming Back with A Bang
If this huge order for 7n and 16nm chips is to be believed, then Bitmain could very well finally be able to take over 50% or more of the total Bitcoin network hashrate. Earlier this year, Bitmain unveiled its Antminer S17 Pro, capable at producing an astonishing 56TH/s. If Bitmain is about to add 600,000 of these S17 pro ASIC rigs to its armory, then we’re going to see its total network hashrate capability increase well over 50% in the space of 6 months. If this happens, Bitmain will once again have the power to control the Bitcoin network and – if Xi Jinping demands it – could very well destroy the Bitcoin network.
ASIC Boost Is No Match
For users of older Antminer rigs, having the power to turn on ASIC Boost has been a great help over the past few months. The feature streamlines operations of the rig and helps to produce more hashes per second. However, when up against this incredibly powerful S10 Pro, even the very best Antminer with ASIC Boost enabled will struggle to keep pace. This could eventually lead to a lot of older ASIC rigs getting sold off, allowing Bitmain to scoop up more of the total network hashrate.
If this rumor is to be believed, then all eyes should be on Bitmain. If Bitmain truly is planning its American IPO for the second half of 2019, then we could see an official announcement as soon as IPO plans are in place. This could make the Bitmain IPO a rather attractive investment.