Bitamin, the world’s leading bitcoin mining conglomeration, could reportedly reach an estimated valuation of $12 billion if news of a rumored mining chip order proves to be accurate.
Bitmain Eyes $1.2 Billion in Profit
According to a report published Aug. 23, Bitmain has ordered 600,000 mining chips. The report cites an anonymous source on the Chinese social medial platform WeChat, who is familiar with the chip-manufacturing firm Taiwan Semiconductor Manufacturing Company.
Bitmain underwent a massive erosion in value last year, with the falling price of bitcoin throughout 2018 leading to a failed initial public offering attempt. However, the mining firm could see a reversal in fortunes following the order of the new mining chips.
The source claims that the chips are apart of the latest 7nm model, which holds a hashrate of 50 TH/s. Bitmain was expected to upgrade its mining operation following the clearinghouse imposed on its outdated ASIC models.
With the 7nm mining chips, Bitmain’s total computing power is expected to increase by "50 percent" over the course of six months, bringing in a potential $1.2 billion in profit for the company. The report claims that such a situation would raise Bitmain’s valuation to $12 billion.
Mining firms, such as Bitmain, have experienced a revival in 2019 with the rising price of bitcoin and crypto-assets making the industry all the more lucrative.