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Mining manufacturer Bitmain has a positive view of bitcoin halving

Mining manufacturer Bitmain has a positive view of bitcoin halving


Bitmain is looking forward to the future of the crypto market. The company is the largest manufacturer of mining computers worldwide, but has had to give up a certain share of the market in recent years.

Bitmain changes corporate strategy

Jihan Wu, the company’s co-founder, said Bitmain needed to take more risks. This included, for example, later payments, offers for customers or new business lines. Bitmain expects the upcoming block halving in May of next year to keep the market growing.

In May 2020, the financial compensation for miners will be halved. At first, this is good news for investors and Hodler, because this way fewer coins come onto the market. Things are a bit more complicated for miners. They are currently earning 12.5 Bitcoin per block. The amount will be halved to 6.25 BTC next year.

Bitmain wants to lure mining companies with discounts

Bitmain is jumping on it by offering new mining equipment for sale. If you reserve between 100 and 999 miners, you can save 50 percent on the purchase. If you even buy 5000 new devices, only 20 percent of the purchase price has to be paid in advance. 

The remaining amount must then be paid seven days before delivery. The idea behind this is that Bitmain largely takes over the financial risk of the customers.

Shoemaker stay with your lasts?

Wu also said that the manufacturer wants to support mining farms. This is especially the case when these companies are not running at full capacity. 

Bitmain believes it makes sense to conclude a type of rental agreement so that its flagship models, such as the AntMiner S17 or T17, are used. In this scenario, Bitmain receives 75 percent of the profit and the other party receives the rest.

Coindesk reported that this is not the first time that Bitmain is expanding its business model. In the past few years, Bitmain, which was actually founded for mining cryptocurrencies, has generated a large part of the profit from the sale of mining devices.

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