Crypto mining giant Bitmain incurs $310M net loss in Q1 2019

Mining • August 5, 2019, 3:45AM EDT

UPDATED: August 5, 2019, 7:02AM EDT

Cryptocurrency mining hardware giant Bitmain Technologies Ltd. has reportedly incurred a net loss of $310 million in the first quarter of this year.

Bifurcating the net figure, Bitmain suffered losses of $345 million and $280 million in January and February, respectively, and made a profit of $315 million in March, according to a report from Tencent’s news portal QQ.

Weak demand for Bitmain’s 16nm range of mining machines, which were sold at lower prices to clear inventory, was reportedly the key reason for the loss. Looking forward, sales of the firm’s recently released 7nm mining machines are expected to lead to a profit.

Bitmain’s initial public offering (IPO) in the U.S. is also “coming soon,” aiming to raise over $1 billion, per the report. Earlier, there were reports that the company is looking to raise $300-$500 million from the offering. Bitmain also attempted to go public in Hong Kong in the past, but the application lapsed earlier this year.

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Yogita Khatri is a senior reporter at The Block, covering all things crypto. As one of the earliest team members, Yogita has played a pivotal role in breaking numerous stories, exclusives and scoops. With nearly 3,000 articles under her belt, Yogita holds the records as The Block's most-published and most-read author of all time. Prior to joining The Block, Yogita worked at crypto publication CoinDesk and The Economic Times, where she wrote on personal finance. To contact her, email: [email protected]. For her latest work, follow her on X @Yogita_Khatri5.