Leading Bitcoin Mining Pool Operator Surpasses $2.5 Billion in Revenue in 2017
Bitmain, dominating nearly 80% of the bitcoin mining market, achieved over $2.5 billion in revenue during 2017, highlighting the rapid growth of the crypto mining industry.
The crypto mining sector has swiftly transformed into a lucrative business, generating substantial income in a short span.
According to Bloomberg, Bitmain, a mining cooperative controlling about 80% of the bitcoin mining market, reported revenue exceeding $2.5 billion last year. Although this falls short of Bernstein Research's earlier forecast of $3 billion to $4 billion for 2017, it still underscores the sector’s expanding potential. (Also see: Who Is Jihan Wu And Does He Essentially Control Bitcoin Today?)
Another major player, Canaan Cooperative, earned $203 million in revenue last year. Based in Beijing, Canaan holds roughly 15% of the bitcoin mining market and has filed for a $1 billion IPO in Hong Kong scheduled for later this year. Additionally, Ebang has partnered with Samsung to manufacture Application Specific Integrated Circuits (ASICs), essential components for mining hardware. (Also see: Nvidia’s Crypto Competitor Raises Concerns at Morgan Stanley)
A Rapidly Expanding Market
Bernstein Research’s February report highlighted that Bitmain reached its impressive revenue milestone within just four years of its inception, a feat that took Nvidia Corp. (NVDA) 24 years to achieve. This accelerated growth trajectory is expected to persist, with crypto mining projected to contribute up to 10% of Taiwan Semiconductor Manufacturing Co.’s (TSMC) overall revenue this year.
Bitmain’s dominance stems from its control over ASIC chip production, which features specialized processors designed to enhance mining speed and efficiency. These chips are crucial for scaling cryptocurrency mining operations, enabling faster coin generation. Capitalizing on high demand, Bitmain has increased prices for its Antminer series—the most widely used mining machines—ranging from several hundred to $5,000. The company also profits from managing the largest bitcoin mining pool, collecting operational fees from users. Moreover, Bitmain generates income by leasing mining power via cloud services and through direct mining activities.
Investing in cryptocurrencies and Initial Coin Offerings (ICOs) carries significant risk and speculative nature. This article does not constitute investment advice from Investopedia or the author. Individual circumstances vary, so consulting a qualified financial professional is recommended before making investment decisions. Investopedia does not guarantee the accuracy or timeliness of the information provided. At the time of writing, the author holds small amounts of bitcoin and litecoin.
Discover the latest news and current events in Cryptocurrency News as of 13-06-2018. The article titled " Leading Bitcoin Mining Pool Operator Surpasses $2.5 Billion in Revenue in 2017 " provides you with the most relevant and reliable information in the Cryptocurrency News field. Each news piece is thoroughly analyzed to deliver valuable insights to our readers.
The information in " Leading Bitcoin Mining Pool Operator Surpasses $2.5 Billion in Revenue in 2017 " helps you make better-informed decisions within the Cryptocurrency News category. Our news articles are continuously updated and adhere to journalistic standards.