Bitcoin’s mining companies: big revenue, small profit

New research by Diar has revealed that the price of Bitcoin remains 40 percent higher than it was a year ago, and BTC miners have achieved record revenues of $4.7 billion this year, under a number of factors including, of course, greater competition and greater computing capacity, which have combined to make Bitcoin mining Less profitable than before.

The report says this creates a dangerous situation for smaller mining operators and puts large mining groups at an advantage.

According to the research, China remains one of the few countries offering retail energy price packages that target the Bitcoin mining, with an average cost of about $ 0.08 / kWH. However, rents, salaries, equipment and other overheads could cause an amateur mining company to quickly become insolvent.


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All this adds up to a market situation that favors the survival of large mining groups.

Bitmain, on the other hand, according to recently published data show that, in fact, it depends more on the sales of its ASIC Antminer mining devices than on anything else, with 95 percent of its H1 2018 revenue coming from sales.

The data also show that Bitmain’s mining strategy is directly linked to its sales strategy for its mining units. According to Diar, Bitmain’s 11 mining facilities in China, along with its soon-to-be-opened facilities in Tennessee, Texas and Washington state could make the company look like a swing producer that controls a significant portion of Bitcoin’s Blockchain hashrate, with the main goal of ensuring profitable mining for all miners.

When miners earn money according to the argument, they will be more likely to buy more mining hardware.

Of course, as a by-product of this, Bitmain’s mining groups also remain profitable, which is especially important for their new operations in North America.

 

CaptainAltcoin's writers and guest post authors may or may not have a vested interest in any of the mentioned projects and businesses. None of the content on CaptainAltcoin is investment advice nor is it a replacement for advice from a certified financial planner. The views expressed in this article are those of the author and do not necessarily reflect the official policy or position of CaptainAltcoin.com

Sarah Wurfel works as a social media editor for CaptainAltcoin and specializes in the production of videos and video reports. She studied media and communication informatics. Sarah has been a big fan of the revolutionary potential of crypto currencies for years and accordingly also concentrated on the areas of IT security and cryptography in her studies.

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