Bitmain changes miners' sales tactics, betting heavily on the Bitcoin halving bomb

Criptomonedas e ICOs | Bitmain changes miners' sales tactics, betting heavily on the Bitcoin halving bomb

The Bitcoin mining colossus Bitmain has modified its sales strategy to reverse a decline in market share following the return of co-founder Jihan Wu at the helm of the company.

In an event for clients
organized by Bitmain on Saturday in Chengdu, China, Wu appeared on stage
for the first time as the only president and CEO a month after recovering the
control. Addressing clients and partners, he presented new strategies for
restore the waning domain of the Bitmain market.

In essence, he proposed to influence
in the miners to keep the Bitmain products making the
company assume the risks related to cash flow, the
Volatility of bitcoin prices and electricity costs.

As such, Bitmain is
betting hard and that the price of bitcoin will rise next year in the middle of
the scheduled reduction of mining rewards, which will reduce the new
Offer created with each block of transactions. If the next reduction to the
halving will really cause a rally like the first two did
It is a topic of debate today.

While the event was exclusive
for customers, the screenshots of the presentation deck of the
company seen and verified by CoinDesk show that Bitmain has released three
main tactics to attract mining investors.

To start, it seems that
Bitmain has replaced its previous sales strategy, because the
customers had to pay the total amount in advance for the team of
mining, for future shipping, a payment structure will now be made

For example, customers
that pre-order between 100 and 999 miners can reduce 50 percent,
while the largest investors who buy more than 5,000 units
They can pay a minimum of 20 percent in advance.

The rest of the payments must
settled seven days before the actual shipping date. But the result is that
this would shift the pressure of the short-term cash flow of customers
towards Bitmain.


A second tactic that
Bitmain plans to launch targets those who own mining farms with
energy resources but still do not have enough equipment to function at
full capacity

The firm said it will offer
a co-mining agreement that lasts more than a year for operators to
Mining farms rent their flagship products AntMiner S17 or T17. Bitmain
would cover the cost of electricity throughout the year to 0.35 yuan ($ 0.05)
per kilowatt-hour, while mining farm operators remain
maintenance managers

In return, Bitmain will retain
75 percent of mining profits and mine operators will take
the remaining 25 percent. Notably, if mining revenues are lower
that the cost of electricity, all the coins extracted would go to Bitmain,
As the presentation shows.

Through this plan,
Bitmain could once again increase its mining capacity for itself, a
investment that has declined in the last two years as the company
focused more on selling equipment.

CoinDesk informed
earlier this year that bitmain reduced its bitcoin hash power of its property
at only 237 peta hash per second (PH / s) in May, a drop of 88 percent
since April, which represents about 0.5 percent of the power
Total network.

However, according to the last
company disclosure, its patented mining power has recovered in
the last six months at 930 PH / s as of December 5, taking
approximately one percent of the total network hash rate.

In addition, Bitmain now seeks
alleviate the concerns of mining investors regarding the
Bitcoin price volatility by offering a sale option to those
They order products in large quantities.

For example, for
users who buy 1,000 units of AntMiner S17 Pro, with a value of
approximately $ 1.5 million, the company will give 62 sales options, with
a total value of one percent of the amount of the miner's order. Each option
of sale would allow customers to sell bitcoins at a price of 35,000 yuan
($ 5,000) on March 27.

If the price of bitcoin
exceeds $ 5,000 for that date, it would be a losing proposal to exercise the
option. If it is below the threshold, customers may exercise the option
to make a profit, whose size depends on how much lower the price of
Bitcoin below $ 5,000 at that time. Bitmain would be the counterpart with
the cost.

Heated competition

It remains to be seen if the new
Bitmain strategies will succeed. But change is a sign of the
intensification of competition in the mining business.

In a recent meeting of
All employees, Wu admitted to his staff that the market dominance of
Bitmain in mining equipment and the hash rate of the mining group have been
decreasing throughout the year.

And it was for that reason that
decided to return to the administration of the company making a move
surprising that he overthrew his co-founder Micree Zhan as president.

Meanwhile, the
Competition among the leading mining manufacturers in China continues
running non-stop before halving or halving bitcoin the
next year with the WhatsMiner manufacturer based in Shenzhen MicroBT that
launches its M30 series of miners.

Also on Saturday, MicroBT
launched the new product line. They have a hash power of 88 tera hash
per second with an energy consumption as low as 38 joules per terahash.

Canaan, the second oldest
world miner producer, recently completed a public offering
initial in the NASDAQ, with $ 90 million of new capital.

The producers of mining equipment with greater efficiency in computing power and energy saving, have to innovate not to be left out in the blockchain-bitcoin business, a brave fight is expected. It is expected by new announcements.


Disclaimer: CriptomonedaseICO is not affiliated with any of the
companies mentioned in this article and are not responsible for their products and / or
services. This press release is for informational purposes only, the
Information does not constitute investment advice or an offer to invest.

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Disclaimer: This press release is for informational purposes only, the information does not constitute investment advice or an offer to invest. The opinions expressed in this article are those of the author and do not necessarily represent the views of CriptomonedaseICO , and should not be attributed to, CriptomonedaseICO .

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