The development of encryption mining is entering a mature and stable stage of scale. The total market value of global cryptocurrencies has exceeded 2 trillion U.S. dollars, and the continued popularity of the crypto market has led to movers entering the market for mining. In this context, new changes have taken place in the distribution of global computing power. The scale of overseas computing power has gradually expanded, and mining concept stocks have gradually emerged in the U.S. capital market. Faced with the current changing trend of digital currency mining, Bitmain is accelerating its development after experiencing the “2020 Magical Series”. This global leading technology company, which was established as early as 2013 and achieved full coverage in the fields of mining machines, mining pools, mines, cloud computing power, and energy reuse, seems to be brewing and welcoming the new highlights of the 2021 mining revolution.
On April 24, the “2021 New Infrastructure Blockchain Summit” hosted by Inbit and co-hosted by Golden Finance and Yikuang was held in Chengdu. At the meeting, Golden Finance interviewed Guo Yiliang, the head of Bitmain’s sales and business in China, and talked about the current mining trend, Bitmain’s in-depth layout, and new ASIC mining technology.
New ideas, new journeys, rooted in computing power, development ecology
Since its establishment in 2013, Bitmain has been in the leading position in the industry for a long time by technological innovation. In April, Bitmain also revealed that it would soon launch a new Ethereum mining machine, E9, and said that the new Ethereum mining machine would become a “game-changer,” the mining machine’s computing power is equivalent to 32 NVIDIA 3080 Graphics card. This means that E9 can be calculated at a speed of approximately 3040MH/s.
Not only Ethereum but also Bitcoin mining machine sales, Bitmain also keeps breaking new records. On April 13, the Pennsylvania software company Integrated Ventures announced that it had purchased 4,800 Bitcoin (BTC) mining equipment from Bitmain; on April 15, Taoping and Bitmain signed a purchase agreement for the Antminer S19jPro
at the cost of approximately 157 million Yuan; On April 16, Clean Spark, a Nasdaq-listed company, has signed a contract to purchase 22,680 Bitcoin mining machines to meet “urgent needs” and increase production capacity. It can be said that as a leading mining machine manufacturer in the industry, Bitmain has already made huge profits in this bull market. However, Bitmain’s layout is much more than that.
At the Shenzhen Summit on March 12 this year, Mr. Zhan Ketuan, Chairman of Bitmain, clarified the future development policy of Bitmain. He said that Bitmain would continue to be rooted in computing power, adhering to the concept of “long-term, win-win, and loyalty” to achieve long-term mutual benefit and win-win results with more excellent supply chain partners and customers, and continue to enrich and transfer benefits to mining pools, mines, Ecological partners in the fields of cloud computing power and energy reuse provide a solid guarantee for customers’ long-term investment value.
It is worth mentioning that Bitmain’s sales business will also expand from a single mining machine sales model to multiple modules such as mining machine sales, mining pool promotion, mine construction, after-sales business, Ant Academy promotion, and AntSentry operation and maintenance. Provide customers with high-quality, stable, and comprehensive solutions for the entire process, from purchase, installation, and configuration to mining machine operation and maintenance.
The income of old models is considerable, and the resources of the mine are gradually tightening.
Facing the hot market in the encryption industry, Guo Yiliang shared from the sales of mining machines and pointed out that, judging from Bitmain’s several pre-sales of mining machines last year and even this year, the market has an urgent demand for mining machines. Under the current market conditions, S9 and some old models of other brands are also very profitable, and they will continue to operate within a period. This also means that the resources of the mine will gradually become tight. It is expected that by the end of this year’s prosperous water period, Maybe more scarce than last winter.
As the leading company in chip R&D and mining machine production, Bitmain’s original intention is not only to produce and sell more mining machines but also hope that after customers get Ant mining machines, there will be high-quality and stable mines that can be managed and operated. This year Bitmain will also spend human resources actively seeking some companies to build a batch of large-scale and high-standard mines. In addition to mine resources, mining machine operation and maintenance is also a business module that the industry needs to improve and expand. Ant Academy is a training service project launched by Bitmain. The ultimate goal is to let more people learn how to operate, maintain and repair ants. Mining machines have made the entire market more and more convenient. At the same time, AntSentry, Bitmain’s internal operation, and maintenance software for many years, will soon be available, and it will be in a free and open state.
With the gradual increase in the number of mining machines this year, the scale of the mine is also gradually expanding. However, the existing mining machine maintenance points and maintenance personnel are not enough to meet the speed of mining machine repair. Therefore, Bitmain is now also deploying more authorized maintenance points and franchising maintenance points to increase the coverage area of the maintenance station. It is also one of Bitmain’s recent strategic directions to ensure the operating qualification rate and profitability of the Antminer.
Launched 5nm model, expected to launch a new generation of water-cooled miners by the end of the year
In recent years, cryptocurrency mining has made considerable progress. As the “weapon” of miners, mining machines are constantly pursuing lower power consumption and higher efficiency. As the world’s leading provider of Bitcoin chips and mining machine solutions, what new ASIC mining machine technologies Bitmain can bring in 2021 is also the market’s focus.
Guo Yiliang pointed out to Golden Finance that chip research and development has always been one of Bitmain’s core competitiveness. Bitmain has launched two models, S19j and S19jPro, which are supported by the world’s most advanced 5nm technology this year. Although this is the first release of a 5-nanometer mining machine, its first computing power board had been designed in 2019. After a year of continuous testing and design optimization by R&D engineers, the current model of the machine has been very stable.
In addition to mining machine chips, power supply and heat dissipation design are also essential for mining machine design. At present, some mainstream mining machines on the market are still air-cooled. The environment, temperature, humidity, and dust will have a significant impact on the stability and life of the mining machine, and the current conditions of the mine cannot accurately control the computer room.内的温度。 The temperature within. But, as early as 2018, Bitmain launched the first water-cooled mining machine S9 Hydro. This mining machine had excellent performance and stable operation at the time, but because it was turning the market into a bear, this model did not produce a good market effect.
It is worth noting that although it has not reached the stage of mass production, there are already some small-scale water-cooled computing power machines in operation on the market, and enthusiasts and experts in the industry are very optimistic about the technical design of water-cooled heat dissipation. Golden Finance also learned that Bitmain has not given up on the development of water-cooling technology. It has been operating R&D internally for the past two years. After a period of accumulation and precipitation, it will launch a new generation of water-cooled mining machines at the end of this year. When the water-cooled mining machine is quantified in the market and has a particular market share, some problems in the mining industry will also be solved.
North American mines usher in a development boom; carbon peaking policy is not the dominant factor.
At the two sessions this year, carbon peaking and carbon neutrality were included in the government work report for the first time. Carbon peaking refers to my country’s commitment to increasing carbon dioxide emissions before 2030 and gradually reducing after reaching the peak. Carbon neutrality refers to the calculation of the total amount of greenhouse gas emissions produced directly or indirectly by enterprises, groups, or individuals within a certain period, and then through plant afforestation, energy conservation, and emission reduction, etc., to offset their carbon dioxide emissions to achieve carbon dioxide” zero-emission.” When Carbon Peak and Carbon Neutral became the “hot words” discussed by the delegates and committee members, they also triggered discussions in the mining industry. Because the operation of mining machines requires a large amount of electricity, and the leading electricity currently used comes from thermal power plants. In April this year, Inner Mongolia shut down some mines due to excessive carbon emissions, etc. Various factors have caused the mining industry to respond—worries about things.
In fact, with the increase in carbon dioxide emissions, the global greenhouse effect has grown, which indeed poses a threat to the human ecosystem. This is the mining industry and a practical issue that needs to be considered in all walks of life. If you want to reduce the impact of the carbon peak policy on the industry, you still need to find the root of the problem, and you need to solve these pain points through product design and technology improvement. For example, if we can centrally manage the heat generated by the mining machine and use it effectively, many problems can be avoided. This is what Bitmain will do next to promote the sustainable development of the industry.
It is worth mentioning that Bitmain also revealed that starting from May, it will conduct inspections of American mines in terms of mine scale, electricity price, quality, business relations, and mineral relations to help miners seize the gold rush in the North American market. Bitmain mentioned that the overseas market, especially the mines in North America, must have increased rapidly this year. Still, the reason is not because of the domestic carbon peaking policy, because Western countries have the same high standards for environmental protection. The main reason for the accelerated overseas development is that the current foreign institutions and funds are more and more optimistic about the prospects of Bitcoin. They bless Bitcoin through transactions and invest a lot of money to lock in the number of Bitcoin mining machines. In self-operated mining. This can be seen from the order data of Bitmain that the proportion of overseas purchases of mining machines is steadily increasing. Another point is that the construction of overseas mines has gradually matured, and the construction time has been dramatically shortened. It used to take a year or even longer to build a mine in Texas, but due to the current level of technology and market awareness, it can be completed in 8 months.
Ant Pool will be the world’s largest mining pool platform, and financial product modules will be added later.
Compared with the 2017 bull market, the competition of top mining pools has become more intense in this round of bull market. The emergence of exchange mining pools has gradually broken the mining pattern of the old mining pools monopolizing computing power. In the face of competition, the ant mine pool is full of confidence.
Guo Yiliang pointed out to Golden Finance that Antpool, an ant mining pool, was established in 2014 and operating stably for seven years. In the future, Antpool must be the world’s largest mining pool. Of course, it will not be limited to a single business line of the mining pool. Because with the increasing recognition of Bitcoin and the increasing number of deposits, the financial attributes will become stronger and stronger. Miners’ demand for financial products and services such as digital currency financial management and pledged currency lending will rise accordingly. To give customers more choices, Antpool must also increase the module of this product.
For the development of the industry, it is a good thing to have more companies participating in the layout. From the data point of view, the current number of mining pools is indeed relatively large, but the top 3 or top 5 mining pools have not changed much in the long run. This also shows that the market share of mining pools mainly depends on technology accumulation. Next, Antpool will also focus on technology and services to provide more diversified products to the market.