Since Bitcoin isn’t quite near the all-time high last year, crypto miners have been affected. The cost of energy, not to mention the tools needed in order to operate may even have some miners in some parts of the world deal with losses. In fact, this is the reason why basement miners are no longer efficient.
However, it is quite a different story for mining giants. Bitmain, a Chinese bitcoin mining giant, revealed a bit more about its plans. Bitmain Technologies was able to make $747.2 million in profit in the first half of the year alone. In contrast to last year, that’s a nine-fold increase. In the same period last year, the revenue is up by ten folds, to $2.8 billion as of the end of June.
Brian Kelly who is the founder of BKCM commented that “Clearly by the numbers, they’re quite profitable”. According to Kelly, the disclosure of Bitmain is quite important because for many crypto participants, if Bitmain isn’t making money, then there is a chance that they would be selling their holdings to fund operations.
However, the exact amount is still not disclosed in the papers. And also, Bitmain has publicly bet on Bitcoin Cash. Bitcoin Cash experienced a 20% rally after the paper was published. Kelly mentioned that “They won’t have to sell any of their crypto holdings, that’s really positive for cryptocurrencies”.
IPO to Hong Kong
It has been confirmed as well that Bitmain is looking to bring its IPO to Hong Kong. This plan was already in the news for a few weeks now. This will be a significant move for the industry since this will give us an idea regarding people’s interest in the crypto sector. Do people have the confidence to put their money on a mining company?
It was reported that the bulk of the company’s revenue came from selling hardware that mine cryptocurrencies. Bitmain was able to design different microchips that have been used for mining cryptocurrencies and even for artificial intelligence applications.
Bearish Market But Altcoins Are On The Rise
Right now, the market is still bearish. However, looking at cryptocurrencies, altcoins are starting to pick things up. Ethereum and Ripple are going back and forth for the second spot. Ripple, despite dealing with lawsuits, has recently experienced a surge all because of xRapid.
If you are going to ask the likes of Mike Novogratz, he believes that it is only a matter of time before Bitcoin comes back. For him, Bitcoin has already bottomed. Also, if you will look at the movement of other altcoins, it seems that there is really another bull run.
Another reason to believe that there could be a bull-run is the fact that regulators are now becoming comfortable with cryptocurrencies. Bitcoin has been considered a commodity along with Ethereum. And also, there is a possibility of having a Bitcoin ETF.
Will Bitmain IPO be successful? Though the industry is slowly gaining traction, there are still hesitations regarding the sector. In fact, recent Bitcoin ETF application rejections by the US Securities and Exchange Commission were due to the possibility of market manipulation.