{"id":135780,"date":"2020-06-08T22:03:28","date_gmt":"2020-06-08T21:03:28","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=135780"},"modified":"2020-06-09T21:29:14","modified_gmt":"2020-06-09T20:29:14","slug":"why-the-crypto-mining-industry-may-see-its-first-big-change-since-2014","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/why-the-crypto-mining-industry-may-see-its-first-big-change-since-2014\/","title":{"rendered":"Why the crypto mining industry may see its first big change since 2014"},"content":{"rendered":"

Internal struggles at Bitmain<\/a>, the biggest Bitcoin mining equipment maker in the world, are persisting. It is opening up the global crypto-mining industry to new entrants for the first time since 2014.<\/p>\n

Canaan, the other dominant Bitcoin mining equipment manufacturer<\/a> listed on the Nasdaq, is also finding it challenging to uplift their operations.<\/p>\n

The stock price of Canaan declined from $8.98 to $2.12, dropping by 76 percent since its listing on the U.S. stock market just seven months ago.<\/p>\n

Crypto mining sector will likely see new dominant companies<\/h2>\n

The Bitcoin mining equipment industry is a tough sector to enter for startups.<\/p>\n

It has a high barrier to market entry for emerging companies \u2014 to manufacture and distribute mining equipment worldwide, a partnership with major semiconductor companies is necessary to sustain stable operations.<\/p>\n

Canaan and Bitmain, for instance, are working with Taiwan Semiconductor Manufacturing Company<\/a>, one of the biggest semiconductor corporations in the world alongside Intel, to produce ASIC mining chips. To work with top semiconductor manufacturers, companies need to secure a sizable deal as firms like TSMC tend to prioritize deals with larger conglomerates like Apple.<\/p>\n

For new entrants, it is challenging to secure a consistent flow of mining chips and distributing them to clients globally. But, the lackluster performance of Canaan and the alleged dispute between Bitmain co-founders Jihan Wu<\/a> and Micree Zhan<\/a> are shaking the crypto mining sector.<\/p>\n

Last week,\u00a0Primitive Crypto founder Dovey Wan<\/a> said that Zhan reportedly brought private guards to the Beijing office of Bitmain to retain control of the company.<\/p>\n

Wan said<\/a>:<\/p>\n

“Micree today led a team of private guards crashed Bitmain Beijing office … they broke in by brute force and tried to take back the control (after Jihan\u2019s initial coup and series of outrageous behavior)”<\/p><\/blockquote>\n

She added that Zhan seemingly took control of the Beijing office and encouraged employees to work for him, explaining:<\/p>\n

“Seems like Micree took the power back. a official letter signed by him was published today (after above ‘break in') calling employees ‘it\u2019s time to back to the office and seize the opportunity.'”<\/p><\/blockquote>\n

One of the newly emerging crypto mining equipment manufacturers is Microbt. Also based in China, the company recently released the M30S++ miner<\/a> with 112 terahash per second capacity.<\/p>\n

In February, Bitmain revealed two new mining chips with capacities of 95 TH\/S and 110 TH\/S, both lower than the M30S++.<\/p>\n

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Announcing the #Antminer<\/a> S19 Series! The #AntminerS19<\/a> has 2 variants, a 95 TH\/s and 90 TH\/s model, with a power efficiency of 34.5\u00b1%5 J\/TH. The #AntminerS19Pro<\/a> has a 110 TH\/s and 105 TH\/s model, both with a power efficiency of 29.5\u00b1%5 J\/TH. Learn more at https:\/\/t.co\/2ftncwFOl2<\/a> pic.twitter.com\/opW7IcZ3yZ<\/a><\/p>\n

— Antminer_main (@Antminer_main) February 27, 2020<\/a><\/p><\/blockquote>\n