Nvidia faces Inventory Problems with Low Mining Demand

The company foretold a market slow down, but however it overestimated crypto mining demand
21 June 2018   429

After a significant growth in 2017, the crypto market is afflicted from a massive slow down this year. This has not only influenced on the crypto investors but made a massive impact on other spheres as well. One such industry is the GPU manufacturing industry which demonstrated a huge rise in demand last year. 

Jen-Hsun Huangm, CEO of American chip manufacturing giant Nvidia has declared at Computex 2018 that the company will not come up with any new GPU for “a long time.” This decision was caused by the falling market requirement for Nvidia GPUs especially the GeForce 10 series cards that are very popular among the crypto miners and gamers. Also, one of its Asian OEM partners returned 300,000 units of GPUs to Nvidia that added fuel to the firm’s woes.

We’re working really hard to get GPU down to the marketplace for the gamers and we’re doing everything to advise retailers and system builders to serve the gamers. And so, we’re doing everything we can, but I think the most important thing is we just got to catching for supply.
Jen-Hsun Huangm
CEO, Nvidia

In 2017, Nvidia’s GeForce 10 GPU got big popularity especially among Ethereum and other altcoin miners. This finaly deprived the gamers of gaining their hands on these GPUs. Many reports also revealed that Nvidia has inflated prices of graphics cards in the wake of growing craze in crypto mining.

Strong demand in the cryptocurrency market exceeded our expectations. Cryptocurrency mining accounted for a higher percentage of revenue than the previous quarter. Keep in mind that’s very difficult for us to quantify down to the end customers’ view. Our main focus remains on our core market, as cryptocurrency will likely remain volatile.
Colette Kress
Executive Vice-President, Chief Financial Officer, NVIDIA

Nvidia also foresaw the impending downturn of the mining business and assumed that the decreasing market demand will pull the prices of their GPUs after Q3 2018.

Bitmain to Plan to Raise $3B Thru IPO

This reported by Bloomberg refering to "people with knowledge of the matter"
15 August 2018   111

The largest manufacturer of mining equipment Bitmain will submit a listing application to the Hong Kong Stock Exchange in September. The company plans to raise $ 3 billion during the IPO, according to Bloomberg, citing informed sources.

It is noteworthy that Cihan Wu intends to expand the range of the company's activities and bring it to the market of artificial intelligence. It should be noted that many representatives of the crypto-currency community refer to these plans with a share of skepticism.

CoinDesk argue that Bitmain intends to raise $ 18 billion, surpassing the IPO of the Facebook. In this case, the capitalization of the mining giant can range from $ 40 billion to $ 50 billion.

It also became known that the company received serious position on Bitcoin Cash, probably due to the sale of bitcoins. A number of industry experts believe that in the second quarter of 2018 Bitmain suffered huge losses.

It is worth noting that competitors of the giant Canaan Creative and Ebang can also enter the IPO in Hong Kong.