December 16, 2019 / Business

Bitmain Will Pay For Electricity Of Miners

bitmain

The team of the largest mining hardware manufacturer Bitmain presented a new business development strategy for the company. The latter is designed to increase the level of effectiveness in dealing with competitors, reports MinerUpdate.

The details of the strategy, divided into three main areas, company representatives shared during a conference in Chengdu, China. Active effort in this direction is associated with a decrease in the share of the manufacturer in the mining hardware market from 70% in June this year to 65% (as of December). The strategy contains the following suggestions:

  • Buyers of hardware open the possibility of making the balance of the order value by the date of shipment of the order. Previously, the manufacturer demanded that the entire amount be transferred upon execution of the contract.
  • Users who have made an order from 1 thousand of Antminer S17 Pro will be provided with 62 put options. The latter will open to customers the opportunity to sell bitcoin Bitmain at the rate of $ 5 thousand (35 thousand RMB) on March 27, 2020.
  • Bitmain will offer customers a joint mining agreement. The target audience of the latter will be mining farms that do not work at full capacity. As part of the joint cryptocurrency mining agreement, it is indicated that Bitmain will cover electricity costs at a price of $ 0.05 per kWh, in case of rental of Bitmain Antminer S17 and T17 models by the user.

The agreement states that Bitmain will receive 75% of the profits. The rest is owned by the owner of the mining farm. If the profit from mining is less than the cost of electricity, the company plans to take 100% of the income.

At the same time, information appeared in the network that the Shenzhen District Court froze the assets of its subsidiary Bitmain – Century Cloud Core – in the amount of $ 680,000. The reason was the manufacturer’s disagreement with the organization Dongguan Yongjiang Electronics, which supplies hardware components.

Recall, in late November, one of the main competitors of the manufacturer of mining hardware – Canaan Creative – ran IPO. Subsequently, information appeared in the network that Bitmain was planning to launch IPO too. Previously, the company has repeatedly tried to go public. Against the background of preparations for a public offering, the company has experienced personnel changes.

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