According to the report of the analytical company Sanford C.Bernstein & Co., the world’s largest producer of equipment for cryptocurrency mining Bitmain, with the activity of which various riddles and assumptions are related, can lose technological advantage over its competitors. This is written by Bloomberg.
“The Beijing company, founded by 32-year-old billionaire Jihan Wu, may need to evaluate the equipment at its disposal, as competing manufacturers of mining devices start to catch up with it,” analyst Mark Lee said.
Taiwan Semiconductor Manufacturing Co., which manufactures chips for Bitmain, should ask the company to make full prepayment and refrain from allotting all production facilities for the production of equipment aimed at the cryptocurrency market, analysts at Bernstein believe.
“The competitiveness of Bitmain chips is questionable,” they write.
While analysts recognize Bitmain’s “incredible success” last year and note that the company still controls an 85% share of the chip market for cryptocurrency, it continues to feel the growing influence of competitors in the face of Canaan Inc. and Ebang International Holdings Inc., which, like it, are planning an IPO on the Hong Kong Stock Exchange.
Lee notes that Bitmain assumes serious risks, being the holder of a large position in the Bitcoin Cash cryptocurrency. Earlier, Blockstream’s chief strategist Samson Moe wrote that Bitmain was buying Bitcoin Cash at an average price of $900 per unit, and one of the bloggers suggested that Bitmain’s desire to lead an IPO could be explained by its difficult financial position and low liquidity of its assets, both in the form of Bitcoin Cash cryptocurrency, and in the form of equipment that is becoming less attractive against the background of offers of competitors.
Recently it became known that Tencent and SoftBank denied the information about their participation in the last investment round of Bitmain.