Micree (Ketuan) Zhou, co-founder of Bitmain ‘The world’s first consumer-grade 16nm ASIC miner, most power-efficient bitcoin miner and best ROI for any bitcoin miner’, is set to launch a 100,000 ASIC mining operation in China this May.
The ASIC consortium is being led by Jank Group, and marks a substantial venture for Chinese cryptocurrency miners – with Bitmain co-founder Zhou amongst the backers. Interestingly, local publications suggest that Bitmain has purchased private shares in the operation through Fujian Chuangke. Up to 40% of the capital from this new venture will be available to Bitmain.
The launch of such a large-scale mining consortium could significantly increase demand for Bitmain’s ASIC rigs – coming at a crucial time for the company. Recent stories surfaced of the company firing ‘its entire staff of Bitcoin Cash developers’ as well as ‘complete closure of its blockchain development lab in Israel’ due to adverse market conditions.
This latest venture demonstrates Bitmain’s continued commitment to supporting the Bitcoin ecosystem as well as developing newer ASIC models. Coupled with Bitcoin’s relatively low hashrate, and decent break-even speculative price and the new Chinese mining operation could herald the beginning of a miners ‘bull run’.
Many Bitcoin mining operations have faced closure due to high water-mark contracts; the pre-agreed profitability targets with which many farming rigs secured funding. As a result Bitcoin’s network viability is in dire need of economic validation in order to sustain secure consensus.
There is clear future demand, and profit, for industrial mining operations. Despite turbulent market conditions investment continues to be made in developing more efficient hardware. With Bitmain’s mega-mining launch, China’s reputation as a mining superpower looks set to continue well into the future.