A former employee of Bitmain challenges the giant bitcoin mining

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In a modest office Jan Cocina, which is a short drive from the prestigious Beijing Tsinghua University, the tables are covered components for ASIC miners, and standing beside the cot talking about the exhausting daily routine of engineers.

In this “bunker” Ian is opposed to the company Bitmain Technologies — his former employer and a leading manufacturer of mining equipment, which is going to spend IPO.

Yang says that Bitmain has helped in the development of advanced technologies, but resigned in June 2016 after the company’s founders, Jihan Wu and Mikri Zhang rejected his request to share in the business. A month later, Jan started his own mining company MicroBT. He says his miners as good as Bitmain (if not better).

The company wants to become one of those who would destroy the monopoly in the market Bitmain ASIC-mining. According to forecasts from Frost & Sullivan, by 2022 Empire Gihan Wu will grow more than five times and, despite the current drop in cryptocurrency market will reach a valuation of $17 billion.

Although Bitmain controlled about three-quarters of the market in 2017, some analysts, such as Marc Lee of the Sanford C. Bernstein believe that the company may lose its advantage. If MicroBT and other competitors will capture larger market share, this can complicate plans for Bitmain to attract billions of dollars in the IPO.

Bitmain refused to comment on this article for Bloomberg, only by recognizing that high competition is a potential risk to the business.

According to Jan, MicroBT already raised $22 million and is in talks with institutional Chinese investors for additional funding. He is considering filing for an IPO next year to participate in the race with Canaan and Ebang — mining companies that also want to compete with Bitmain in the stock market.

One of the benefits of the brainchild of Ian is that MicroBT not become a victim of Bitcoin Cash, the value of which in 2018 fell by 60%. Bitmain, fully support this cryptocurrency is its largest holder (read more in this article).

On the other hand, Bitmain still superior MicroBT almost all financial indicators. The company Gihan Wu in the first half were $743 million in profits on $2.8 billion of sales. MicroBT, according to Jan, during the same period, earned $48 million profit on $186 million of sales (to reveal more detailed financial information Yang refused).

Yang, the majority shareholder MicroBT, is confident that his company has a good chance to challenge Bitmain. After graduating from Tsinghua University in 2001 with a scientific doctorate in mechatronics, Ian has worked on projects energy-efficient chips. He engaged in mining hardware in 2014. In particular, he worked in ASICMiner, and 15 months was engaged in the development Bitmain Antminer S7. After Ian left the company, Bitmain tried unsuccessfully to sue him for patent infringement. A Chinese court revoked a patent Bitmain, referring to the fact that the scheme has been widely used.

The flagship MicroBT is asik Whatsminer M10, which, according to Jan, can provide better energy efficiency compared S8i Antminer from Bitmain. He adds that MicroBT working on updates in order to remain competitive, and said:

Their technology is great. As our.

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