The Chinese company Bitmain now dominates bitcoin mining. Bernstein estimates that Bitmain earned between $3 billion and $4 billion last year, while chip maker Nvidia made $3 billion in profits during the same period. It is noteworthy that Bitmain achieved such profits in just four years, while Nvidia needed 24, Bernstein analysts note in their report.
Cryptocurrency mining has gained significant momentum thanks to the excitement in the cryptocurrency markets. Chip technology is undergoing changes aimed at reducing energy consumption. Just a few years ago, bitcoin miners used conventional graphics processing units (GPUs) to handle the calculations needed to mine the cryptocurrency. In 2013, Bitmain began selling ASIC chips that can mine bitcoin 50 times faster than traditional GPUs.
Today, Bitmain sells Antminer Bitcoin, mining rigs that cost from a few hundred to a few thousand dollars. The company also operates mining pools where participants collaborate on mining to reduce costs. Analysts at Bernstein estimate that Bitmain's market share is between 70 and 80% in the mining rig and ASIC market.
Bitmain has developed an effective strategy to remain a leading player in the market. The company created a subsidiary mining pool in April last year in Israel, is opening mining farms in Canada and Switzerland and a regional office in Singapore, in addition, it also included Ethereum and Monero mining in its activities.
According to analysts, most of Bitmain's revenue was obtained through the sale of mining rigs running on the company's chips. The rest of the profit was obtained through the mining itself.
According to https://www.newsbtc.com
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