Bitmain: success story and plans for future

David Kemp

According to Bernstein company research, the Bitmain made profit of $ 3-4 billion in 2017. It was derived from cryptocurrency mining as well as selling mining equipment. The Corporation proves its power by claiming about abilities to drive video card manufacturers Nvidia and AMD out of the market for several times. As well, it claims to have forces to compete with Google in the field of artificial intelligence.

Bitmain’s Story 

Mikri Zhang and Jihan Wu were the company’s founders. They met back in 2010, when Jihan Wu asked Mikri Zhang to help him get the investmentments in DivaIP. He was already familiar with bitcoin and translated Satoshi Nakamoto's Manifesto into Chinese. The computer consoles’ developer gave Jihan Wu the idea of producing special chips for bitcoin mining.

Back at that time, bitcoin rate was around 1 dollar. Jihan Wu has spent all his savings and available funds for purchasing bitcoins. As well, he has started a cryptocurrency news website 8btc.com, which became popular among China’s crypto community. Within just 2.5 years, bitcoin rate shot up from 1 to 900 dollars. Then Wu realized trading cryptocurrency is not the only way one can make money on it: one can make profits by mining it. At that time, it was possible to get 25 bitcoins in 10 minutes. 

Jihan Wu decided to launch mining business. First, he contacted the Mikri Zhang by e-mail. The future partner spent a few hours to study bitcoin. He figured out all the opportunities and prospects and accepted the offer immediately.

Antminer S1 was developed in 2013, when bitcoin cost 1200 dollars. Therefore, the equipment was in great demand. Antminer appeared to be 50 times more efficient than PC, and the device’s power consumption was surprisingly lower as well. The article "Mining farm in 2020" tells whether it is reasonable to purchase equipment for cryptocurrency mining.

Bitmain’s plans and prospects

Bitmain company is definitely not planning to rest on its laurels and remain complacent. The company’s next important work stage is artificial intelligence development. Jihan Wu’s colleagues have reported the reasons why Bitmain needs artificial intelligence.

Mining and artificial intelligence do have something in common – each direction requires an impressive amount of computation. Customizable ASIC chips are applicable for this purpose.

Bitmain offers prototypes of its own Sophone BM1680. Such chip cost 600 dollars. It speeds up machine learning when connected to computer. Such equipment is not as efficient as equivalent solutions from NVIDIA and AMD, but its price is more reasonable. As well, it is even more applicable for some types of deep learning. Wu is sure that in 5 years time, 40% of his company's cash proceeds will be gained from chips for artificial intelligence.

The Bitmain’s success story is really exciting. It is based on Jihan Wu’s enthusiasm. Today, the company’s profit reaches about 3.5 billion dollars. The Corporation is intended to work on artificial intelligence equipment development and set new records in it. Our portal prepares the most interesting news and messages about cryptocurrency. Stay tuned and you will always have the most up-to-date information.