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Bitmain would have earned more than $ 300 million in 2020 despite its alleged problems

April 29, 2020

The Chinese manufacturer of cryptocurrency mining hardware, Bitmain made a profit of over $ 300 million in the first four months of 2020. This news comes despite the COVID 19 outbreak and recent rumors of internal problems, a recent report suggests.

Bitmain has been reported to earn more than $ 300 million and reward employees with massive bonuses

According to industry blog Wu Said Blockchain, Bitmain internally announced that the company has earned more than $ 300 million so far this year. In addition, the mining giant regained market share by opening four new mining facilities and saw an increase in the hashrate in two of its mining pools.

The report specifically mentions that Bitmain’s artificial intelligence (AI) business has also grown rapidly.. The company entered the industry in 2018 and planned to use its pre-built chip designs to power systems and software for artificial intelligence.

Bitmain would have earned more than $ 300 million in 2020 despite its alleged problemsBitmain would have earned more than $ 300 million in 2020 despite its alleged problems

According to a January report proposing massive layoffs, The company is now expected to reward its employees with individual bonuses of up to 70,000 yuan (approximately $ 9,900) on work day, which is scheduled for May 1st. Payments for bonds will be “million yuan” according to the report.

New report contradicts previous rumors and legal issues

Given this, the new report may surprise you Bitmain is considered one of the biggest victims of the “crypto winter”, and the next halving or halving of Bitcoin is also likely to affect mining profits. Together with the job cuts mentioned above, Bitmain saw a noticeable decline in market share in the second half of 2019. The pandemic would also have affected the mining industry in China, although a Bitmain Cointelegraph representative previously said that this had led the company to explore alternative working methods.

The latest issues for Bitmain include reports that suggest this The Bitmain S17 / T17 Antminer mining machines have a high failure rate. There is also a well-documented litigation between two of its co-founders, Jihan Wu and Micree Ketuan Zhan. In October 2019, expelled Wu Zhan, who was partner and president of Bitmain at the time. Wu also warned employees to stop interacting with the former top manager and threatened to fire those who disobeyed.

Since then, Zhan has filed two complaints against Bitmain and its artificial intelligence subsidiary, Fujian Zhanhua Intelligence Technologies, to regain its position as a shareholder. Bitmain believes that Zhan’s allegations are unfounded and ensures that the results of the case have no impact on the company’s operations.

Cointelegraph asked Bitmain for further comments but hasn’t heard from the company yet. This story is updated when an answer is received.

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