Crypto mining hardware maker Bitmain is planning to utilize its inventory devices for mining crypto.
According to a Coindesk report published on March 21, the Chinese miner-manufacturer will deploy around 200,000 mining devices from its inventory in southwestern China to take benefit of cheap hydroelectric power costs during the summer following the excessive rains in the region.
The crypto mining giant is already in talks with a local company for hosting its devices, as per the sources of the publication.
The report also detailed that Bitmain will use its new mining products, including AntMiner S11 and S15, along with some older models like AntMiner S9i/j – all pieces of equipment used for mining proof-of-work algorithm-based digital currencies. However, it is unclear which crypto the company will mine.
Based on a rough estimation, the fleet of 200,000 pieces of mining equipment costs around $80 to $100 million – the list price of Antminer S9j is $400, while each S11 is priced at $500 at Bitmain’s official website. This does not include the Antminer S15 at $1000, which will push the estimation even further.
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According to some mining operators, the cost of electricity in summer in the region is around $0.037 per kilowatt hour. Moreover, considering the f2pool’s index equation, each S9j, S11, and S15 could generate a daily profit of $1.29, $2.24, or $3.38, respectively. At the current benchmark electricity cost of $0.05 per kilowatt hour, each of these devices can return $0.87, $1.8, and $2.88 respectively in profit.
Based on these figures, Bitmain will generate a monthly profit of at-least around $7.7 million.
The leading crypto hardware manufacturer recently launched a new product to mine Equihash-based cryptocurrencies.
Will It Go Public?
The deadline for Bitmain’s application for a public listing is also approaching. If the company does not receive a date for a hearing from the Hong Kong-based stock exchange by March 26, its application will lapse.
The slumping market for crypto mining especially in the second half of 2018, also taken a heavy toll, as the Chinese company reportedly endured a loss of $500 million in Q3 2018.