Chinese mining equipment giant Bitmain is reportedly planning to set up 200,000 units of mining equipment in China to benefit from low-cost hydroelectric power, according to sources close to Coindesk. They hope to take advantage of the cheap power during the summer after southwestern China goes through its rainy season, which begins in May.
Miners are once again attracted to the region thanks to the excess electricity generated by hydropower stations. The cheap prices means that they can once again mine with a profit.
The company is planning to deploy mainly new models, such as AntMiner S11 and S15. With the prices at $502 for AntMiner S11 costs $502 and $722 – $1 035 for S15 the move will mean a huge investment. It is economically more viable for Bitmain to use the machines to mine than sell them off during a bear market.
Bitmain opened eleven mining farms in Sichuan, Xinjiang, and Inner Mongolia last year, with an accumulative capacity to store about 200,000 sets of mining hardware.These farms are used for self-mining and hosting others’ miners, and are not connected to where the company wishes to set up its new machines.
This comes in the wake of Bitmain closing its development center in Israel and reducing its operations in the Netherlands. They also laid off local employees last year and have downsized their Texas mining operations.
Bitmain Control Most Processing Power On Global Bitcoin Network
Bitmain may be the most influential company in the bitcoin economy by virtue of the sheer amount of processing power, or hash rate, that it controls. Its mining pools, Antpool and BTC.com, account for roughly 30 percent of all the processing power on the global Bitcoin network. However, the unknown blocks mean that the origin of the miners has not been determined.
According to CoinDesk, financial results disclosed by Bitmain when it filed for an initial public offering on the Hong Kong Stock Exchange last September, self-mining revenue dropped from 20.3 percent of the total in 2015 to 7.9 percent in 2017 and was just 3.3 percent for the first half of 2018.
The company is a master of vertical integration, from designing the silicon that goes into the mining rigs, assembling them and selling them to customers around the world to operating its own mining farms. Bitmain’s founder Jihan Wu is a polarizing character within the industry with some saying he is trying to control and manipulate the environment to his own ends.
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