The major producer of cryptocurrency mining capacities – Bitmain – unveiled its financial performance report with huge losses recorded over the first two months of the year.
According to the unveiled data, the company faced a total loss of $625 million over the period under review.
In Q1 the company reported total operating income amounted to $1.082 million, though it had to sell off obsolete facilities (16-nm) at a reduced price in January-February, which entailed losses of $345 million and $280 million respectively.
However, Bitmain managed to offset the decline partly via the March income at $315 million. Still, the company's total loss in Q1 reached $310 million.
Despite the negative performance in the first months of 2019, the company management still expects good figures in H2 2019 thanks to strong demand for new capacities. As it was noted, the company will completely get rid of old equipment and start selling new 7-nm capacities.
There are reports that Bitmain has already ordered a big supply of 7-nm chips from Taiwan Semiconductor Manufacturing Company (TSMC). The shipment period is 3-4 months.
It should be mentioned the company's good performance is an important factor for making Bitmain interesting for new investments, especially if it eventually files IPO application in the USA.