Bitmain Had A Drop Of 88% In Its Own BTC Mining Power
You may remember the time in which Bitmain was the king of the crypto market. That time is past now. According to recent reports, the internal mining operations of the company are down by 88%. The information comes from the latest disclosure made by the company on May 7.
According to it, the hash rate owned by the company dropped to 237.29 from 2,072 PH/s. If you think that’s a lot, wait until you we tell you that the second number is from last month. The numbers are not even from 2018, the decrease happened in less than 30 days. This is really worrisome.
Bitmain, which is based in Beijing, the capital of China, is mostly known for manufacturing crypto mining rigs. However, not even this is going well right now. Now, the hash share of the company is of less than 0.4% of the total hash. Most of the current hash power should probably come from AntMiner S9, a new model which is the fastest that the company has so far.
This shows that the company might have recently unplugged at least 130,000 machines from one month to another. This is very curious, too, when you consider that many miners are still enjoying the rainy season in China in order to have more profits and Bitmain seems to be giving up on that.
It is important to notice that this does not mean that Bitmain has shut down all of its equipment, though. The computing power of the company has certainly declined recently, especially this month, but several other people are still using their equipment and this still have their own machines.
At the moment, the total hash power of BTC is around 58,000 PH/s, according to Blockchain.info data. Bitcoin Cash, one of the strongest opponents of Bitcoin Core (BTC), has a total hash power of 2,500 PH/s in comparison.
Why Has Bitmain Decided To Shut Down So Many Miners?
There is a serious doubt that is very relevant at the moment: why has the company done it. Why shut down so many mining rigs? When Coindesk interviewed a representant from the company, he said that it is a “natural course” in mining business the hash rate to basically change hands.
While on one moment one company might have it, another one might have it later. So there is a possibility that the hash was sold to another company.
In any case, almost all of the most recent news indicates that something is not quite right with Bitmain. The company was once one of the highlights of the industry, but now it seems that it is quickly decreasing in importance.