Analysts: Bitmain Mining Company has earned more NVIDIA over the past year

Bitman company Cihan Wu and Mikri Zhang were founded in Beijing only four years ago. During its existence, Bitmain has not only turned into one of the largest earners of crypto-currencies, but has also become a notable player in the market of specialized equipment for mining . It produces and sells ASIC-miners and manages its own mining pools, continuing to rapidly increase its revenues. So, according to the calculations of independent analysts, in 2017 the company was able to earn more than NVIDIA.

According to conservative estimates of gross income of 75% and operating profit of 65%, analysts were able to calculate that the mining company last year made a profit of $ 3.5-4 billion. According to their estimates, NVIDIA's profit for the same period was $ 3 billion. At the same time, Bernstein analysts note that the majority of Bitmain's revenue was obtained precisely thanks to the sale of ASIC-miners, and the rest is earned on the production of crypto-currency and provision of computing capacities for rent. Bernstein believes that in 2018 the company's revenues will remain at the proper level, but they doubt in the long-term growth, as the market of crypto-currency is very unstable.

"Nevertheless, in order to achieve such indicators, Bitmain took only four years, whereas NVIDIA managed to achieve similar results, spending six times as much time," Bernstein said in a report.

The company's revenue growth last year was largely due to the increase in the Bitcoin price, but analysts noted that Bitmain is trying to regulate prices for its own equipment, which largely depend on the quotes of the crypto currency. With the increase in the Bitcoin price, the price of AntMiner S9 also increased significantly, although the costs for the production of ASIC-miners remained unchanged.

Experts believe that the benefit of the Chinese company is the expansion, which it has been dealing with recently. When the Chinese authorities decided to restrict the activities of the mining companies in the country, Bitmain drew attention to other crypto-currencies and opened branches in Canada and Switzerland.

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