Mining hardware manufacturer Bitmain Technologies has reportedly supported losses of $310 million in the first quarter of 2019.
Tencent’s QQ reported that the ASIC miner producer generated a profit of $315 million in March, but the net figure turned negative in January and February as in these months, the firm lost $345 million and $280 million respectively.
The losses were allegedly due to the company’s decision to clear its inventory of 16nm mining hardware. But the company is optimistic that it will make profits from its new line of 7nm ASIC-based miners which will be put on the market soon. Bitmain currently is the only company which produces en masse 7nm ASICs.
According to the report, in the first quarter of this year, Bitmain had an operating revenue of $1.082 billion – $253 million each for January and February, with $579 million being produced in March. The gross margins for the 3 months were $7.91 million, $14.7 million, and $25.21 million respectively.
With the bullish wave Bitcoin experienced this year, things have started to take a positive turn for the Bitmain mining company.
Bitmain is focusing on the future with the release of its new series of 7nm mining machines, with hopes of changing their current revenue status.
The company also revealed plans of revisiting its plan of an IPO, which was put on the shelf due to the long bearish period from last year.
As a company that is based mostly on Bitcoin mining equipment, there is a correlation between the trading price of Bitcoin (BTC) and the revenue of Bitmain’s service. Because of this, the impact of last year’s crypto winter caused the company to shut down its operations in Israel and Amsterdam and cut down massively on personnel.
Bitcoin’s unexpected drop led to an abrupt decrease in the sales of Bitcoin mining hardware, which in turn caused Bitmain revenue losses.
Featured image: CoinDesk