Bitmain, the world’s largest cryptocurrency mining equipment producer, may be losing its competitive edge, a new research by investment management firm Sanford C. Bernstein & Co. suggests.
“The competitiveness of Bitmain’s chips is in question,” the analysts wrote in a report published on Wednesday, citing the recent crypto market downtrend, the company’s Bitcoin Cash (BCH) investments and the technological development of rivals.
Bitmain, which currently controls an estimated 85% of the market for cryptocurrency mining chips, reportedly made $1.1 billion in profit in the first quarter of 2018. However, the recent bear crypto market has hampered demand for mining hardware, thus affecting the company’s margins, Bernstein noted.
The analysts added that Bitmain’s Bitcoin Cash hoard represents a “major risk” to the firm’s profitability. Leake...
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