Bitmain Mined Crypto for Its Own Benefits on Devices Owned by the Customers

AMD is an interesting addition on the TSMC list since they moved over from GlobalFoundries after they closed the 7nm plants. Qualcomm is also a …

Cryptomining company Bitmain is facing several troubles at once. Thecompany is facing multiple lawsuits and had to sell its latestAntminer S15 at a loss to help pay off its debt.

Blockstream CSO Samson Chow talked about the company’s problems in a series of tweets; he said,

“1/ Bitmain already facing multiple lawsuits and more being filed. Their assembly, component, production, and repair companies are unpaid and losing patience. It seems Bitmain is deep in debt and trying to raise new capital from unwitting investors to keep going.”

Selling Antminers at a loss

Thecompany sold the latest iteration of its mining hardware- theAntminer S15 at a loss. The units were sold for 30% below cost. Chownoted that the cost basis for the 7nm chips is 3x of the 16nm chips.Now, several questions are being posted about the S17 50 TH miner.

There are rumors that the company is cherry picking the units to show their potential investors and get some funding. The yield for their 7nm chips is bad, and only close to 60% are viable. Chow notes that Bitmain could have only made about a 1000 S15 miners. This shows grim times for the company which is currently facing a cash crunch.

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Bitmain Inner Mongolia Virtual Currency Farm. Reportedly operating 25.000 ASIC devicdes mining Bitcoin and other cryptocurrencies around the clock every day. Court document image.
Bitmain Inner Mongolia Virtual Currency Farm. Reportedly operating 25.000 ASIC devicdes mining Bitcoin and other cryptocurrencies around the clock every day. Court document image.

The 7nm issue continues

TSMC also says that they have sold their entire 7nm chips to companies like Apple, Qualcomm, Nvidia, AMD, and Huawei. AMD is an interesting addition on the TSMC list since they moved over from GlobalFoundries after they closed the 7nm plants. Qualcomm is also a new switchover to TSMC. They were earlier working with Apple. There is no way for Bitmain to work here, even if their chip design is good. TSMC’s capacity is full, making 7nm a lost cause for the Chinese mining company.

Bitmain’s supplies are going unpaid, and their lawsuits will keep the company busy in the meanwhile. One of them was filed in November last year which sought $5 million in damages. According to the documents filed in the North District Court of California, the company mined crypto for its own benefits on devices owned by the customers.

Law suit filed by Bitmain's customer.
Lawsuit filed by Bitmain’s customer.

The lead plaintiff of the lawsuit Gor Gevorkyan, from Los Angeles County dragged the China and US-based entities of the company saying that the lengthy ASIC setup process that their devices need allows the company to benefit off the customers.

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Bitcoin Cash (BCH) moved up $4.00 during a day

Bitcoin Cash (BCH) had a good 24 hours as the cryptocurrency jumped $4.00 or 3.13% trading at $131.86. According to International Cryptocoin …

Bitcoin Cash (BCH) had a good 24 hours as the cryptocurrency jumped $4.00 or 3.13% trading at $131.86. According to International Cryptocoin Analysts, Bitcoin Cash (BCH) eyes $145.05 target on the road to $248.49. BCH last traded at Coinbase exchange. It had high of $136.38 and low of $127.64 for March 9-10. The open was $127.86. About 56,494 BCH worth $7.54M traded hands.

Bitcoin Cash (BCH) is up 2.26% in the last 30 days from $128.94 per coin. Its down -31.56% in the last 100 days since when traded at $192.66 and the annual trend is down. 200 days ago BCH traded at $518.42. BCH has 17.58 million coins mined giving it $2.32B market cap. Bitcoin Cash maximum coins available are 21.00M. BCH uses SHA256 algorithm and PoW proof type. It was started on 01/08/2017.

Bitcoin Cash (BCH) is a hard forked version of the original Bitcoin. It is similar to bitcoin with regards to its protocol; Proof of Work SHA-256 hashing, 21,000,000 supply, same block times and reward system. However two main differences are the the blocksize limits, as of August 2017 Bitcoin has a 1MB blocksize limit whereas BCH proposes 8MB blocks. Also BCH will adjust the difficulty every 6 blocks as opposed to 2016 blocks as with Bitcoin.

Bitcoin Cash is a proposal from the viaBTC mining pool and the Bitmain mining group to carry out a UAHF (User Activated Hard Fork) on August 1st 12:20 pm UTC. They rejected the agreed consensus (aka BIP-91 or SegWit2x) and have decided to fork the original Bitcoin blockchain and create this new version called “Bitcoin Cash”. Bitcoin Cash can be claimed by BTC owners who have their private keys or store their Bitcoins on a service that will split BCH for the customer.

Specification

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Analysts noticed Bitcoin Cash (BCH)’s 24 hours decline of -3.46%

Bitcoin Cash (BCH) had a bad 24 hours as the cryptocurrency declined $-4.61999999999998 or -3.46% trading at $128.77. According to Top Crypto …

Bitcoin Cash (BCH) had a bad 24 hours as the cryptocurrency declined $-4.61999999999998 or -3.46% trading at $128.77. According to Top Crypto Analysts, Bitcoin Cash (BCH) eyes $141.647 target on the road to $319.227432613572. BCH last traded at Kraken exchange. It had high of $133.54 and low of $126.38 for March 7-8. The open was $133.39. About 38,745 BCH worth $5.05M traded hands.

Bitcoin Cash (BCH) is up 12.78% in the last 30 days from $114.18 per coin. Its down -41.32% in the last 100 days since when traded at $219.44 and the annual trend is down. 200 days ago BCH traded at $513.43. BCH has 17.58M coins mined giving it $2.26 billion market cap. Bitcoin Cash maximum coins available are 21.00 million. BCH uses SHA256 algorithm and PoW proof type. It was started on 01/08/2017.

Bitcoin Cash (BCH) is a hard forked version of the original Bitcoin. It is similar to bitcoin with regards to its protocol; Proof of Work SHA-256 hashing, 21,000,000 supply, same block times and reward system. However two main differences are the the blocksize limits, as of August 2017 Bitcoin has a 1MB blocksize limit whereas BCH proposes 8MB blocks. Also BCH will adjust the difficulty every 6 blocks as opposed to 2016 blocks as with Bitcoin.

Bitcoin Cash is a proposal from the viaBTC mining pool and the Bitmain mining group to carry out a UAHF (User Activated Hard Fork) on August 1st 12:20 pm UTC. They rejected the agreed consensus (aka BIP-91 or SegWit2x) and have decided to fork the original Bitcoin blockchain and create this new version called “Bitcoin Cash”. Bitcoin Cash can be claimed by BTC owners who have their private keys or store their Bitcoins on a service that will split BCH for the customer.

Specification

https://blockchair.com/

Receive News & Ratings Via Email – Enter your email address below to receive a concise daily summary of the latest news and analysts’ ratings with our FREE daily email newsletter.

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Former Bitmain Employees May Find Refuge in a Spinoff Startup Called Matrix

The Bitmain branch Copernicus was known for creating a Golang-based Bitcoin Cash (BCH) full node implementation with the same name. Last year …

According to regional reports, members of Bitmain Technologies and other connected subsidiaries like Copernicus are starting an offshoot company called Matrix. It is not officially known yet just what Matrix will do but some sources allege that the new spinoff will offer cryptocurrency lending services, an over-the-counter (OTC) desk, and custody solutions.

Also read: Survey Shows Consumers and Investors Remain Bullish on the Future of Cryptos

Former Bitmain Employees and Copernicus Members Possibly Forming a Startup Called Matrix

There’s been a lot of changes within the cryptocurrency industry and one of the world’s largest mining manufacturers, Bitmain, has seen its share. Reports have detailed that the falling cryptocurrency economy has caused the company to lay off certain members of the team and close down offices in Israel and Amsterdam. On Jan. 10, news.Bitcoin.com reported on Bitmain’s director of product engineering, Haichao Wang, apparently taking the lead role with the mining corporation in place of Jihan Wu. Now a few different reports from local sources and people familiar with the matter suggest that Wu and a bunch of other Bitmain staffers are forming a new startup called Matrix.

Former Bitmain Employees May Find Refuge in a Spinoff Startup Called Matrix
Bitmain’s Israel office was closed earlier this year.

Chinese news outlet All Weather Tmt (AWT) details that Matrix may be led by Bitmain’s Ge Yuezhen and former members of Copernicus. The regional publication details that Jihan Wu will be working on the project as well. The Bitmain branch Copernicus was known for creating a Golang-based Bitcoin Cash (BCH) full node implementation with the same name. Last year, miners using the Copernicus software also managed to mine the first BCH block with an alternative full node protocol designed with the Golang programming language. Allegedly Bitmain’s senior investment director Ge Yuezhen will be the new company’s chief executive officer.

Former Bitmain Employees

Lending, OTC, and Custody Services

The publication additionally details that there have been internal arguments concerning two technologies Bitmain has been pursuing — artificial intelligence (AI) and blockchain technology. AWT explains that senior Bitmain executives disagree on the future of both technologies and which one will be the best choice for the firm going forward. According to the publication, Jihan Wu is responsible for BCH business, blockchain projects, and the mining pool. Meanwhile, Micree Zhan reportedly oversees the AI chip operations, mining semiconductors, and some mining facilities. Furthermore, news outlets Caijing and South China Morning Post reported that Wu was leaving Bitmain but AWT says that information is false. “Wu’s departure from Bitmain is purely a rumor,” the report emphasized but added Wu will superintend the Matrix project from the sidelines.

Another source explains on March 7 that the new business spinoff will offer over-the-counter cryptocurrency services. Furthermore, journalist Wolfie Zhao revealed that two individuals close to the startup remarked that the Bitmain offshoot will also handle crypto lending and custody services. The report also details that there were “two camps inside Bitmain,” each aligned with different cofounders, further confirming AWT’s report on the disagreements.

Former Bitmain Employees
Bitmain’s artificial intelligence (AI) chipsets called Sophon.

Over the last year, there have been lots of stories surrounding Bitmain as it made significant profits in 2017 pulling in an estimated $4 billion in revenue. Then the company filed for an initial public offering (IPO) in Hong Kong. However, 2018 was a severe downward spiral for the entire industry and, being one of the most successful cryptocurrency firms the year before, Bitmain was hit with an onslaught of bad press. The trend of Bitmain-related headlines continued through the BCH blockchain split in November and into the new year. Whether it’s positive or negative news, it could be argued that the Chinese mining giant receives a lot more press than most companies in the industry. The Matrix spinoff news has added one more unconfirmed tale from sources claiming to be close to the action.

What do you think about Bitmain possibly creating an offshoot startup called Matrix? Let us know what you think about this subject in the comments section below.


Image credits: Shutterstock, Pixabay, and Bitmain.


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Jamie Redman

Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for news.Bitcoin.com about the disruptive protocols emerging today.

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Former Bitmain Employees Look To Launch Crypto Custody, OTC Trading And Bitcoin Lending …

One of the two Bitmain sources said that two wings exist within Bitmain, with one focusing on Bitcoin Cash and blockchain development, while the …
Former-Bitmain-Employees-Look-to-Launch-Crypto-Custody-OTC-Trading-and-Bitcoin-Lending-StartupFormer-Bitmain-Employees-Look-to-Launch-Crypto-Custody-OTC-Trading-and-Bitcoin-Lending-Startup

Ex Bitmain Employees To Launch Crypto Financial Services Startup

A new financial services startup firm is currently in the works, this new startup is being spearheaded by ex-employees of the renowned crypto mining company Bitmain.

It has been found out that the startup team comprises of former team members of the project “Copernicus” of the crypto mining company.

According to insider information, the startup will support lending of cryptocurrency, over the counter trading and custody services.

Bitmains Fork In The Road

One of the two Bitmain sources said that two wings exist within Bitmain, with one focusing on Bitcoin Cash and blockchain development, while the other on chips for mining cryptocurrency. The two wings are aligned with the interests of the co-founders Jihan Wu, and Micree Zhan respectively.

The startup crew is a combination of the Wu’s crypto mining chips team and those from the Copernicus project.

The Copernicus project was launched last year to increase development of Bitcoin Cash, along with the development of its wormhole protocol.

Due to the Bitmain’s recent downsizing, that has inspired the new crypto startup, the Copernicus project also has had no new updates since December 2018.

Startup Incorporation

Yusheng Ge, who is currently a major shareholder of Bitmain, is rumored to also be the on the new company’s incorporation documents. This rumor was defended by a source who said it wasn’t surprising, as Ge has always been a proponent for Wu’s ideologies at Bitmain.

When asked for a comment on the rumors, Bitmains spokesperson initially offered no comment but retorted that Wu will still remain with Bitmain.

Ipo Challenges

4% of Bitmain’s shares were documented to be owned by Ge, according to the prospectus of their IPO. Ge was also listed as a principal investor and an executive director.

In November of 2018, in an alteration to the business registration, both Wu and Ge were removed as board members.

This change in the executives, regardless of their unchanged positions as co-CEOs, may negatively affect their IPO application.

According to a source conversant with the IPO process, if 6 months pass after the application without advancing to a listing hearing, the application will lapse.

The Hong Kong stock exchange has been suspected to be hesitant to grant IPOs due to reservations about the stability of businesses involved in cryptocurrency mining.

Today’s Top Coin Market Price Prediction: Bitcoin (BTC), Ethereum (ETH), Ripple (XRP) and Litecoin (LTC)