Bitmain to Sell Antminer S15 at Loss, - Samson Mow

According to Blockstream CSO, company is desperately trying to attract investment to cover debts and only 60% of 7nm chips for S17 are viable
11 March 2019   572

Samscon Mow, Chief Strategic Officer of Blockstream, one of the most avid public critics of the mining giant Bitmain, said that several lawsuits have already been filed against the Beijing company. At the same time, Bitmain allegedly has huge debts to suppliers and production contractors.

Bitmain already facing multiple lawsuits and more being filed. Their assembly, component, production, and repair companies are unpaid and losing patience. Seems Bitmain is deep in debt and trying to raise new capital from unwitting investors to keep going.

Samson Mow

CSO, Blockstream

Mow claims that Bitmain sells Antminer S15 devices at a loss (the price is 30% below cost). According to him, the company has produced only 1,000 such miners.

In this regard, he questioned the success of the new model S17, since the architecture of 7-nanometer chips from Bitmain allegedly does not provide the necessary performance (in practice, he noted, no more than 60% of all chips are viable).

Selling the S15’s at a loss (~30% below cost) was a bad idea. The cost basis for 7nm chips is 3x that of 16nm chips. What about the new S17 50TH miner though? I’m hearing that the yield for Bitmain 7nm chips is very bad, maybe 60% are viable. Only about ~1000 S15’s were made.

Samson Mow

CSO, Blockstream

Blockstream's CSO believes that the company demonstrates to investors the work of individual chips, which do demonstrate the declared performance, but mass production is likely to be economically unjustified.

From what I hear, Bitmain is cherry picking good chips from the tape-out to create demo miners to show to potential investors. It’s all a fancy magic show because their actual yields are so bad that mass production would never be economical. But that’s not their only problem…

AMD had to switch from GlobalFoundries, when they closed their 7nm plants. Qualcomm switched from Samsung to TSMC. So there’s no capacity left for Bitmain even if they had a viable chip design.

Samson Mow

CSO, Blockstream

Company is desperately trying to attract investment to cover debts to suppliers. At the same time, Bitmain sells the S15 at a loss, and the S17 model can be completely untenable.

Argo to Report on Mining Profitability Increase in Q2

It was also reported that by the end of June, company owns about £ 3 million in crypto assets, which is 7.7% higher than expected
03 July 2019   239

The British mining company Argo Blockchain published a financial report for the second quarter of 2019, according to which its revenues increased significantly in the second quarter, exceeding its own expectations.

So, in comparison with the previous report, published in early June, the income from mining Argo Blockchain increased by 24%. The increase in profitability from mining at the same time turned out to be proportional to the increase in the Bitcoin price observed during the recent period.

The Company now expects to generate 161 BTC, or GBP1.38m of cryptoassets, in June based on a BTC price of $10,817.16 USD as of 30 June 2019. This is an increase of approximately 101% from the Company's May mining results and represents a mining margin of roughly 81%. The Company considers that this demonstrates that the Company is one of the most efficient miners in the market.

Argo Blockchain Team

Argo Blockchain also said that as of the end of June, the company owns about £ 3 million in cryptocurrency assets, which is 7.7% higher than expected.

Also Argo Blockchain intends to expand its activities. In particular, the company plans to deploy another 2500 miners in Quebec by the end of the third quarter, which is also expected to significantly increase revenues.

Our better-than-expected mining performance reflects both improving industry conditions as well as Argo's business strategy, which has enabled it to rapidly ramp up operations and thereby take full advantage of the upturn. As a result, we enter the third quarter with a strong momentum to deliver further growth and improving mining efficiency.

Mike Edwards

Executive chairman, Argo

It should be noted Argo Blockchain was the first cryptocurrency company, the placement of shares of which was approved by the London Stock Exchange last June.