Bitmain Adjusts its Business Strategy After a Failed IPO

Chinese crypto mining giant Bitmain has confirmed its application for an initial offering (IPO) on the Hong Kong Stock Exchange (HKEx) officially expired and revealed the appointment of their new CEO in an internal letter on March 26.

In late 2018, Bitmain laid off a couple of departments amid reports of financial difficulties. Recently, the company’s co-founders Jihan Wu and Micree Zhan have both stepped down as co-CEOS, there are rumors suggested infighting amongst the two regarding the development of Bitcoin Cash. Although these rumors are unsubstantiated, the administrative upheavals still make People more concerned about the future of the mining chip titan.

Bitmain endured a difficult 2018, its rapid expansion leads to significant losses in the crypto market slump. This time, the company has learned a lesson and stated that its focus for 2019 will be on the major business: the crypto mining devices and AI chips.

This year, Bitmain launched the second generation 7nm-chip BM1397 which offers about a 28.6 percent improvement in power efficiency after the Lunar New Year celebration.

“In the future, Bitmain will focus more on the R&D of chips for use in mainstream cryptocurrency mining and be more cautious for producing small coins mining devices,” a staff of Bitmain disclosed.

Obviously, Bitmain is trying not to repeat the tragedy of their Antminer X3 which launched last March but has been rejected by the Monero (XRP) community.

In addition to crypto mining devices, Bitmain also eyeing the AI chips. A person with knowledge of the matter said that Bitmain’s AI products are mainly centered on the security scene.

It was reported that Bitmain has signed the Memorandum of Understanding (MoU) with the Fuzhou Municipal People’s Government to provide the cutting-edge AI technology support in the ‘City Brain’ smart city project.

Bitmain is still optimistic about this industry. “We will restart the listing application work at an appropriate time in the future,” the company said on its website. However, the longer research and development cycle of advanced AI chips would be a big challenge for Bitmain.

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