Bitmain launches new chip: is the crypto market expected to rebound or is it all because of an IPO?

Bitmain has announced the BM1397, a new, more efficient cryptocurrency mining chip. The chip sports a 28% power efficiency improvement over its predecessor. The news brought with a mention of upcoming S17 and T17 models, about which very little other information is available. According to a press release, the chip uses just 30 joules per terrahash. This means that as much as 33 terrahash can be powered by just 1 kilowatt of power. If an existing mining outfit were to simply replace its existing hashpower with the newer models (once they’re available), the power savings would be immediate.

However, the new models are likely to be even more powerful in terms of terrahash capability than existing models. You’ll be getting more crypto-mining power but paying for the same amount (or more) electricity. Manufactured by Taiwan Semiconductor Manufacturing Company, who had a poor earnings call which they blamed on the downturn in the crypto market, the 7-nanometer chip demonstrates that despite its other problems, Bitmain is still passably working on its core business.

Bitmain has dealt with several scandalous situations in the run-up to its eventual IPO. Layoffs and a boardroom shake-out, combined with more than one pending lawsuit, have led plenty to wonder about the future of the world’s largest Bitcoin mining manufacturer. However, there are now three multi-billion dollar cryptocurrencies using SHA256, the heart of Bitmain’s business. Bitcoin, Bitcoin Cash, and Bitcoin SV all share the same hashing algorithm. Bitmain CEO Jihan Wu was famously a massive proponent of Bitcoin Cash during its establishment, and development of the top-5 cryptocurrency is partially funded by Bitmain.

Bitcoin Mining Giant Bitmain Launches New Chip, Hints at New Miners, CCN, Feb 25