China Mining Co. Bitmain Shows Higher 2017 Profits Than US GPU Giant Nvidia, Report Finds

Chinese mining hardware giant Bitmain has reportedly made higher profits in 2017 than long time American graphics processing unit (GPU) manufacturer NvidiaCNBC reported Feb. 23.

CNBC writes that according to a report published Feb. 21 from investment research company Bernstein, the four-year-old Bitmain reportedly made between $3 and $4 billion in operating profit in 2017, whereas Nvidia, founded 24 years ago, made about $3 billion during the same period.

Bitmain, founded in 2013 by Jihan Wu and Micree Zhan, uses Application-Specific Integrated Circuit (ASIC) cards to mine Bitcoin (BTC), sells ASIC-powered AntMiner BTC mining rigs, and also operates “mining pools”, a system in which cryptocurrency miners share resources and split rewards.

Nvidia-manufactured graphics cards reportedly tend to appeal more to “hobby miners”, who may choose to buy a conventional GPU, rather than investing in a more powerful and expensive ASIC-powered rig, like Bitmain’s AntMiner.

The Bernstein analysis reports that Bitmain holds 70 to 80 percent of the market for Bitcoin miners and ASIC cards, with most of the revenue made from selling the mining rigs, “and, to a much lesser extent, by collecting management fees from the mining pools it operates and renting out the mining power of its mining farms through cloud services.” […]

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