Bitmain expects positive results despite $625 million losses

Bitmain expects positive results despite $625 million losses

The leading manufacturer of Bitcoin mining equipment Bitmain suffered losses in January-February of 2019 totaling $625.000.000. Nevertheless, the company expects that high demand for new 7-nm devices will allow it to end the year with positive results, writes Cryptoglobe with reference to local media.

Thus, according to WeMedia, with total operating income of $1.082 billion (during first 4 months), the Chinese company was forced to start selling outdated equipment (16-nm) at low prices, resulting in a loss of $345.000.000 in January and $280.000.000 in February respectively.

This was partially offset by revenues of $315.000.000 in March, but in the period of January to March, the company's total losses amounted to $310.000.000.

Bitmain expects positive results in the 2nd half of 2019 when the old equipment should be completely eliminated and the company will begin selling new 7-nm devices. It is reported that the manufacturer has already made a large order for 7-nm chips from Taiwan Semiconductor Manufacturing Company with a delivery time of 3-4 months.

The company also expects that in the third quarter, as orders for new devices arrive, the cash flow will gradually increase, and the explosive growth of income will begin after the first deliveries.

Positive financial results will also be extremely important for attracting new investors, if Bitmain, who had previously intended to go public in Hong Kong, will be expected to submit an initial public offering in the United States.

Note that the company additionally expects an increase in revenues from sales of products targeted at the artificial intelligence industry. Thus, in the first quarter, Bitmain launched the BM1684 cloud chipset product line, which brought about $4.61.000.000 in profits in the first 3 months of 2019.