On Saturday in the Chinese city of Chengdu hosted an event world’s largest manufacturer of mining equipment, Bitmain. It made now the sole Chairman and CEO Cihan Wu. Recall that just a month ago, he regained control of the company, shifting Mikri Zhang. He appealed to partners and unveiled a new strategy that should help to return Bitmain dominance of the market. And although the event was mostly focused on retail customers, Wu found to offer large investors in the mining industry.
New conditions of deliveries of equipment from Bitmain
First and foremost, Wu said that the company changed the sales strategy. In the past, customers were forced to pre-pay the full cost of the new equipment. Now to pay ASIC miners work in several stages. That is, customers who order from 100 to 999 miners, can give only half the total amount. But if a large investor orders over 5000 units of product, then you can pre-pay only 20 percent of the total cost. The rest upon delivery.
Thus, the company meets requirements of its clients and reduce problems with search of money.
Read on: the Demand for Bitcoin miners far exceeds the supply. Even at inflated prices.
Affiliate mining from Bitmain
Another new initiative Bitmain is aimed at those who already have their own mining farm and processing power, but they are not yet able to operate at full capacity due to lack of equipment. In this case, Bitmain will be able to agree on a joint mining. Such a contract is for one year, and the client will be model Antminer or S17 T17.
The material on the topic: Bitmain has revealed characteristics Antminer S17 and S17 Pro.
Bitmain will assume the energy costs throughout the year, while the operators of the mining farm will be maintenance costs. While Bitmain will pick up 75 percent of income from mining, and clients – the remaining 25 percent. Not quite a fair offer, of course. And interestingly, if the income from mining will be less costs for electricity, then all mined coins will remain from Bitmain.
How not to lose money on mining
In addition, Bitmain tends to relieve investors from worries about the volatility of Bitcoin, that is, the variability of its course. Investors who bought a large batch of equipment the company plans to issue put options.
Option — a contract under which a buyer obtains the right but not the obligation to buy or sell a certain asset. To do this it needs on a pre-specified price at a future point in time or during a selected time interval.
For example, if you order a thousand units of Antminer S17 Pro – that cost approximately 1.5 million dollars – Bitmain will give 62 option with a nominal value of 1 percent of the total order. Under the terms of these put options, the client will be able to sell them on March 27 at a fixed price of BTC at the level of $ 5,000.
That is, if the price of coins at that time is above $ 5,000, it will not give any benefits. If the price will be lower, it will be an additional opportunity for the client to recapture some of the costs of the equipment. Good idea.
The situation in the mining market
Yet we have to check whether a successful new strategy Bitmain. However, these changes may indicate increasing competition in the mining industry. As Jihan Wu recently admitted at a meeting with employees of the company, Bitmain dominance in this market faltered. That is what forced him to take the company under their own control.
What I mean: By year-end, mining Bitcoin will become a nightmare. How and why?
Meanwhile, the competition between the major mining companies in China is really fierce. Especially given the proximity of halving — that is, halving the reward per block of Bitcoin, which throughout the history of the coins with some delay, led to the rapid growth rate of the coin.
In addition, next year the manufacturer of miners WhatsMiner from Shenzhen MicroBT launches new flagship series equipment under the designation M30. And the second-largest miners in the world, the company Canaan recently completed an initial offering of shares on the NASDAQ. She managed to attract investments of $ 90 million.
Can Bitmain once again become the undisputed leader in the market? Share your predictions in our cryptodata miners. And check in Yandex Zen.
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