Twitteratis have alleged that Bitmain, the mining giant, is knee deep in debt and is desperately trying to raise funds by liquidating its holdings in cryptocurrencies.
Samson Mow, the Chief Strategy Officer at Blockstream and the CEO of Pixelmatic, tweeted details of the companies that are suing Bitmain.
1/ 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. #BitmainIPO pic.twitter.com/fBlSulRaRG
— Samson Mow (@Excellion) March 10, 2019
Beijing Bit Continental Technology Co. Ltd and Shenzhen Yuxin Technologies Co. Ltd were among the companies that filed lawsuits against Bitmain. The S15 miner is another issue the mining giant is tackling as according to Mow, Bitmain sold each of these miners at a loss of 30%.
Adam Back, the CEO of Blockstream tweeted,
“Thread on Bitmain, particularly interesting the S15 miner game: 7nm yield unusably low, 7nm cost 3x 10nm, selling demo-only volume (1000 s15s) at a 30% loss per unit. And efficiency similar to multiple competitors new gen 10nm chips. And no 7nm fab capacity available anyway.”
Samson Mow’s thread further stated that Bitmain was “cherry picking” good S15 chips from a total of 1,000 chips to demo the miners to potential investors.
Moreover, sources from Taiwan Semiconductor Manufacturing Company [TSMC], a company that provides chips to Bitmain, said that they did not have a 7nm capacity to provide Bitmain for crypto ASICs as the existing capacity at TSMC was already sold to Apple, Qualcomm, Huawei, and AMD, among others.
“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.”
Mow’s Twitter thread suggested that Bitmain sold nothing in 2019 and instead, raised money just to stay afloat, whilst burning money.
@rcartman1, a Twitter user, commented,
“Bankruptcy when? I guess soon. Wonder how much Btrash there is left to sell.”
@kyle_DH, another Twitter user, commented,
Potential undesirable scenario for Bitcoin: the Chinese govt invests in Bitmain to continue producing the miners at a lose. In exchange the govt gets access to a large portion of hashpower and uses it to 51% atk Bitcoin. This reduces the trust in the network and China thwarts BTC”
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