Bitmain Technologies, the largest manufacturer of ASIC-based Bitcoin miners, has incurred a net loss of $310 million in the first quarter of 2019.
According to a report by Tencent’s QQ, the Chinese miner maker made a profit of $315 million in March. However, the net figure went negative due to $345 million and $280 million in losses in January and February respectively.
The report detailed that the heavy losses were the result of the company’s decision to clear its inventory of 16nm mining hardware. However, the company is expecting profits from selling its new line of 7nm ASIC-based miners. Bitmain is currently the only company mass producing the 7nm ASICs.
The report also detailed that in the first quarter of this year, Bitmain’s operating revenue was $1.082 billion – $253 million each for January and February, and $579 million in March. Gross margins for these months were $7.91 million, $14.7 million, and $25.21 million respectively.
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With the new 7nm ASIC line, the gross margin of the company is expected to rise by 30 percent in April figures.
Poor figures ahead of public listing
An earlier media report revealed that the hardware making company lost around $500 million in the third quarter of 2018. Though the company did not disclose any figures publically, the numbers were estimated based on various financial reports filed by the company for its initial public offering (IPO).
Bitmain is also desperately pushing to go public. Its application for a public listing with the Hong Kong Stock Exchange (HKEx) lapsed earlier this year as the stock exchange was reluctant to list any company with business entirely based on the controversial crypto economy.
In June, Bloomberg reported that Bitmain is now trying to go public in the United States and is aiming to raise between $300 to $500 million.
Meanwhile, Bitmain’s competitor Cannan Creative, which is the second-largest crypto miner maker, reportedly filed for an IPO in a US exchange.