John UM
“in total, more than 8 million people have been invested in more than 10 months. Now there are 50,000 yuan left in the hands. They are not enough to pay 3 days of electricity. They can only be shut down and sold.” Axing bowed his head to the cryptocurrency APP on the phone. At the age of 33, his face is exhausted and even slightly old
At the end of March this year, Axing was preparing to shut down the Xinjiang mine that had been in operation for less than half a year, sold more than 2,000 ant mine machines and all the cryptocurrency assets in his hands, and bid farewell to the mining circle
“Too much toss. Last year, during the flood season, the mine was built in the Daliangshan Mountain in Sichuan. During the dry season, it was pulled to Xinjiang. The mining machine was damaged in the middle of the migration, and the power was not calculated. It was also blackmailed by the logistics courier. On-site service fee ‘, in order to find electricity is really guilty.” A star eyes covered with bloodshot, smile and laugh at himself, “mining less than a year, my father said that I looked old 10 years old.”
In the 2018 bitcoin mining boom, in order to obtain low electricity bills, in remote areas such as Xinjiang, Inner Mongolia, Sichuan, Yunnan, Henan, etc., large and small cryptocurrency mines depend on mountains and waters
“The scale of 2000 units can only be counted as a small mine. At the end of last year, the small mines below 10,000 units were almost closed at 70% or 80%. The market is too bearish, and the electricity bill can’t beat the big mines. “Always can’t always lose money.” Axing said to the inter-chain pulse that the mines were turned over before 2018. At that time, they were lying to make money, but after the first quarter of 2018, they basically lost money, most of them. The small and medium mine owners have already left the scene
The mine’s “Great Depression” is directly transmitted to the most upstream mining machine manufacturer in the mining industry chain. Since the fourth quarter of 2018, bit mines, billions of international and other mining giants continue to report negative news such as huge losses, large-scale layoffs and production cuts, and mining machine manufacturers are facing a sharp decline in their main business. The situation is embarrassing
On March 26, Bit China issued an internal letter saying that the IPO application to Hong Kong had expired. At this point, including the billion state international, Jia Nan Zhi, the three major mining giants went to Hong Kong to go public
Recently, Mutual Chain Pulse emailed interview letter to the relevant person in charge of the Hong Kong Stock Exchange for the invalidation of the IPO of the three major mining giants. However, as of the date of publication, the HKEx has not received a reply from the HKEx
Although Yibang International has resubmitted the IPO prospectus to the Hong Kong Stock Exchange, Bitcoin has also announced that it will restart its listing. However, in the current downturn of the market and the retreat of a large number of mine owners, the re-listing of miners Road wins geometry?
In fact, not only mine owners and mining machine manufacturers, the continued downturn in cryptocurrency has caused the entire mining industry chain to face the risk of “crashing”. The myth of cryptocurrency mining is accelerating
Single profit plummeted nearly 50 times Huaqiang North Mining Machinery “big retreat”.
In the entire mining industry chain, the biggest and most direct impact is Shenzhen Huaqiang North, which is known as the world’s largest “metal mining distribution center”
“At this time last year, I was able to sell 1,200 mining machines every day. I didn’t have to eat rice. At that time, I was lying down to make money. I didn’t miss customers. The most worrying thing was that there was no goods (mining machine).” 29 years old In front of Li Na, there are three blacks iphone Xs Max. Her hands are expertly replying to the customer message between the three micro signals. She has been used to talking for a long time in the Huaqiang North SEG Plaza. We bowed back to WeChat and only raised the excitement when we mentioned last year’s sales, and then quickly stared down at the phone
“The current market is not good, the profit is too low. When the market was the best last year, the profit difference of one mining machine can earn 20,000 yuan, and the average profit of one mining machine is also about 500. Now sell one. It is very good to be able to earn tens of dollars.” Li Na said to the chain of the chain that many mining machines sell only one miner with a profit of only 10 yuan, and even a profit of 5 yuan per Taiwan
(Huaqiang North mining machine business is deserted, shops are “unattended”).
Li Na was originally a key account manager at a mining machine shop in Huaqiang North SEG Electronics Plaza, but recently chose to go it alone. “The profit margin of a single mining machine has dropped by forty or fifty times compared with last year. We have a profit of 10 points. Now we are selling 10 pieces of mining machine profit. We only get 1 yuan for the commission and sell 10,000 sets of mining machines. Earn 10,000 yuan, it is too bad.”
The sharp shrinkage of the profit margin of the mining machine has severely squeezed the living space of Huaqiang North Commercial Shop. Most shops selling mineral machines have chosen to evacuate or change their business
“i have a monthly rent of 13,000 yuan. Now I am tired of selling the rent of the mining machine. The profit is not as good as selling laptops. We have more than ten selling machines in the opposite direction. Now we have all withdrawn. The market is not good. No customers come to the door. Ah.” Mr. Li from the fourth floor of Huaqiang North SEG Electronic Plaza said to the chain of the chain that there were at least 200 mining machines in the entire SEG Plaza. There are now less than 20, and many others are still withdrawing..
(Many mining machines “evacuation” sublet).
“A lot of bosses have lost money to the old ones. Now there is a pile of mining machines in the warehouse. The low price is not reconciled. If the market is better, then you can lose more, in my warehouse. There are also a lot, do you want it? Cheaper for you.” Mr. Li pointed to the Avalon mining machine handwritten billboard in the corner of the shop. He switched to selling laptops while still selling the mining machine. “Who is the current market? To be sure, the bull market is coming, and the central bank is not ready to issue digital currency.”
But in Huaqiang North, not all mining machines are facing a crisis of survival, and there are a few strong mining companies that are still strong
“Although the market is not good, our survival pressure is relatively small, because we have one-stop from research and development, production, sales, mines and exchanges. We don’t have a mining machine in our warehouse. All the stocks were pulled to the mine to dig the coins, and orders were placed directly at the factory to produce the order. “Mr. Li, a mining shop in Huaqiang North, told the chain of the chain that most of Huaqiangbei’s shops are traders and can only rely on intermediate profits. The difference is to make money, the profit model is single, and the risk resistance is very weak when the market is not good
“We have a lot of mines in Sichuan, Xinjiang, Yunnan, etc. The maximum load of the largest mine is 150,000 kVA, and there are 20,000-30,000 video card mining machines in mining, when the mining machine is not easy to sell. The development of our mining machine hosting business is very good.” Mr. Li revealed to the chain pulse that many small mine owners and retail miners have given us mining machines, and the revenue from mining machine hosting is also good
However, Mr. Li also admitted that in the bear market, the company’s cryptocurrency, mining machine sales and mining business contributed sharply, and the daily cash flow still relies on other financial services to transfuse blood
The uncertainty of currency price fluctuations has become the “life gate” of the mining industry.
In fact, whether it is the “big retreat” of the Huaqiangbei mining machine shop or the “shutdown tide” of the Bitcoin mine in the deep forest, the most direct source is the uncertainty of the fluctuation of the bitcoin currency price. Price fluctuations involve the nerves of all aspects of the mining industry chain
For the miners and mines downstream of the industrial chain, the rise and fall of the currency price directly determines the income, the return period and the enthusiasm of mining, while in the middle of the industrial chain, the mining machine sales end, the fluctuation of the currency price It also affects the fluctuation of mining machine sales prices and market supply and demand
But overall, the impact of currency price uncertainty on the middle and lower reaches of the industry chain will ultimately be reflected in the main business of the upstream mining machine manufacturers in the industrial chain, and even the price fluctuations can be said directly Determine the performance of the mining machine manufacturer
When bitcoin market is good, Bitcoin, Jianan Zhizhi and Yibang International have earned a lot of money. For example, the revenues of the three in 2017 were as high as 2.5 billion US dollars, 1.308 billion yuan and 978 million yuan respectively..
But since the second quarter of 2018, bitcoin prices have fallen all the way, and the performance of the mining giants is not so good. According to Caijing magazine, Bitcoin has turned from profit to loss since the second quarter of 2018, and its loss for the whole year of 2018 exceeded $1 billion. Although the other two mining machine manufacturers did not disclose the specific results in 2018, but from the recent announcement of the reduction of production of this year’s mining machine by Yibang International, the growth of its main business mining machine sales may also encounter bottlenecks
(BTC nearly one year price trend chart).
On the other hand, the uncertainty of currency price fluctuations seriously affects the pricing of mining machine manufacturers in the capital market. Take Bitcoin as an example. According to its prospectus, 27% of the mining revenue of Bitcoin in 2017 was paid by cryptocurrency. As of June 30, 2018, about 28% of Bitland’s total assets were encrypted. Currency, but Bitcoin’s valuation of cryptocurrency uses the cost method rather than the market fair price that was commonly used before, and it also raises questions about professional CPAs and capital markets
For example, recently, Ma Hong, a member of the Chinese Institute of Certified Public Accountants, raised six questions about Bitcoin’s accounting policies for cryptocurrency, impairment tests for intangible assets, and recognition and measurement of cryptocurrency-related income
As early as the end of November 2018, a CPA had said in an interview with the inter-chain pulse that Bitcoin recorded the cryptocurrency assets in accordance with the cost method, which seemed to avoid the impact of large fluctuations in the currency market. However, the final realization will still be measured at fair value. Once the cryptocurrency price falls sharply, it will have a greater impact on its asset changes. The Hong Kong Stock Exchange will also send a letter to ask
From the current situation of the three major mining giants going to Hong Kong for IPOs, the risk of currency price fluctuations is already a stumbling block that hinders the listing of mining machine manufacturers
In fact, for the entire mining industry, the uncertainty of currency price fluctuations is its “life gate”. Throughout the entire industrial chain, whether it is a miner, a mine or a mining pool, or a Huaqiang North of the mining machine sales end, it is helpless to the depressed market, and can only watch the “market” to eat, only at the same time in the upstream of the industrial chain. In order to reverse the passive situation, the mining giants with certain market discourse rights have already started a journey of self-help
The “self-rescue movement” of the mining giant.
After the failure of the IPO in Hong Kong, the three major mining giants quickly launched the “self-rescue movement.”
Among them, the largest and fastest speed is the leader of the mining machine leader, which is in the four major aspects of personnel optimization, organizational structure adjustment, accelerating profit and income increase and main business transformation artificial intelligence
In late November 2018, Bitcoin’s 30% collapse in the week caused “mine disasters” and the mining machine market was raging. The following month, Bitumn had to “move the knife” for the sake of “throttle” winter. Up to now, there are public reports that the scale of layoffs has reached 50%, and the layoff department involves AI, mining pools, mines and BCH Copernicus client team
In terms of the high-level organizational structure, in order to resolve the differences between Wu Jihanhan and the Jenke regiment, the two men also retired as the joint CEO of Bitland, and the former product engineering director Wang Hai was more than the CEO. The Jank Group is still the chairman of the company, and Wu Jihan, who is widely rumored to be resigned, continues to serve as a director of the company
At the same time, in order to improve the performance income of the rapid turnaround and speed up the withdrawal of funds, Bitland first took advantage of the rise of Litecoin in early March, arbitrarily 100,000 Wright mines, and recovered 30 million yuan; followed by March. In the latter half of the year, it will spend 80 million US dollars to build 200,000 mining machines in China, and use the cheap water and electricity during the flood season to rapidly increase the income of cryptocurrency assets
And Yibang International, due to the plight of the 7-nanometer mining machine development team, adopted a conservative strategy of reducing production and survival in the main business adjustment. In early March, Yibang International announced plans to produce 400,000 bitcoin mining machines in 2019, and this target and its performance of selling 309,000 mining machines in half a year have significantly shrunk
嘉楠耘智 has recently announced the completion of a round of financing of hundreds of millions of dollars in the improvement of performance revenue, although it has no public plans, and hopes to promote the company’s main business by introducing traditional venture capital. However, a person familiar with the matter said that although Jianan Zhizhi announced the completion of the financing, in fact, no new investors entered, and the financing has come from the company’s existing shareholders
Finally, in order to avoid the excessive risk of the main business, Bitian and Jianan Zhizhi have made clear the goal of transforming artificial intelligence this year
Bitcoin said in an internal letter dated March 26 that the company will focus on digital currency and artificial intelligence chips and products and services based on it. Jia Nan Zhi said in early March that he will use the chip as an entry point to build an ecological platform for artificial intelligence and blockchain
But the artificial intelligence industry seems to be not optimistic about it. An investor who has invested in the AI chip field for many years said to the chain of the chain, “Bit Continental and Jia Nan Zhi’s chips are mainly to meet mining, but the artificial intelligence chips currently need more breakthroughs are architectural innovation and focus on the industry. Application scenarios, including chip maturity, customer acceptance and competitiveness in the segmentation field, can only truly bring real money income if these conditions are met, but this requires long-term construction and accumulation.”
Therefore, in the short-term, Bitian and Jianan Zhizhi will be difficult to make substantial contributions to the income of the main business by transforming artificial intelligence. Moreover, from the current living conditions of domestic AI chip companies, artificial intelligence chip development It is a “bottomless hole” that burns money
From the “self-rescue” action of the three major mining machine manufacturers, whether it is selling the mining machine or seize the opportunity of cheap water and electricity to speed up the acquisition of cryptocurrency income, its main business is difficult to obtain a sustained and stable expected growth pattern..
The listing of the US to the United States is unpredictable, and the mine’s “making a myth” will end.
In the past few years, the cryptocurrency market has created many billionaires, and the mining industry that followed has also become a huge “rich” machine. The three major mining giants can rise rapidly in a very short period, and directly benefit from the development of the entire mining industry, but now, the market outlook of the three major mining giants is also related to the rise and fall of the entire mining industry
For the current three major mining giants, whether it is to accelerate the development of mass production of more powerful mining machines, or to transform artificial intelligence business, they need huge funds and more financing channels as a support, the listing has long been It is imminent
However, from the situation of the IPOs in Hong Kong, the traditional capital market does not seem to fully recognize the cryptocurrency and mining industry. In addition, the previous industry’s high hopes for the science and technology board did not focus on the blockchain or mining industry
For mining machine manufacturers, it is difficult to land in the capital market in China. In this context, mining machine manufacturers began to retreat to the next level, targeting the United States Nasdaq
In January of this year, Jianan Zhizhi announced that it was preparing to go public on the NASDAQ, and plans to raise $1 billion (about 6.9 billion yuan) in early financing. The preliminary materials have been submitted
Then, after the IPO of Hong Kong stocks is broken, will it be wise to switch to US stocks?
Ma Hong, director of the Chinese Institute of Certified Public Accountants, said to the pulse of the chain that if the miner is listed on the NASDAQ, the chances of success will be even greater. “The United States and other countries have a relatively sound legal system and a more complete financial system. Internet companies such as Alibaba have not been listed in Hong Kong, but they have basically gone to the United States. Maybe the mining machine manufacturers will bring innovation on the NASDAQ. Also a possibility.”
But a lawyer who is not willing to be named in the STO field in the United States is blunt about the chain. The IPO of the HKEx has not been successful, and the probability of success of the three major miners going to the US will be lower
“The success of the mining machine manufacturer on NASDAQ needs to refer to the US Nasdaq listing conditions and make a comprehensive judgment.” Shanghai Jintiancheng Law Firm Chen Rubo believes that the 2018 SEC (SEC) has issued regulatory statements for the cryptocurrency field. The US House of Representatives also passed the HR6069 bill to prevent the illegal use of cryptocurrencies such as Bitcoin, DASH, and ZCASH in June last year. The agency is not lenient in the regulation of cryptocurrency or mining
On the whole, it is still difficult to determine whether the mining machine manufacturer can turn to Nasdaq for success. But what is certain is that with the disappearance of the IPO group of the three major mining giants in Hong Kong, the trough of the cryptocurrency mining industry has arrived, and the era of the “rich myth” of the mining circle will be completely over