Mining Giant Bitmain Is Under Considerable Strain
Taiwanese company TSMC has suspended the supply of chips to Bitmain, a company that manufactures Bitcoin mining hardware. Bitmain borrowed $ 1 billion from TSMC and but t had paid only $ 700 million.
TSMC representatives have not commented on this news yet , however, it became known that TSMC most likely would not collaborate with Bitmain, even in the case mining company would pay the debt in full. If TSMC does continue to cooperate, it may require an advance payment for the chips.
At the moment, Bitmain’s debts amount to $ 550 million, and the company has less than 6 months to pay them off. Also there was information that Bitmain conducts negotiations with the Korean firm Samsung for the purpose in signing of the contract on delivery of chips, nevertheless, success of the transaction is in question, considering the current financial situation of the mining manufacturer.
War Between Bitmain And nChain
Because of disagreements over the upcoming hard fork of the blockchain Bitcoin cash (BCH) between the mining companies Bitmain and nChain, a real war broke out. To win it, Bitmain’s CEO, Jihan Wu, decided to rent the computing power from Bitcoin miners at the Antpool and BTC.com mining pools for mining BCH coins. Under the terms of the lease, Bitmain pays for the hashrate in Bitcoin, and receives Bitcoin cash as a reward for adding blocks.
Profit from mining BCH does not cover the rent for computing power. According to experts, the war with nChain costs Bitmain several million dollars a day. Of course, this does not benefit the financial well-being of the company, it is quite possible that the company actually has no means to repay debts. Moreover, the plan for leasing a hashrate has not yet yielded a result: Bitmain controls 22.3% of the processing power of the blockchain Bitcoin cash, and nChain controls 25.4%.