Bitcoin, COVID-19, News & Updates

Bitcoin miner hit by Coronavirus, dropping at 50% in Revenue

The industry of Bitcoin has also been affected by the ill-economic effects of the continuing coronavirus pandemic.

From a recent filing of the US SEC, The Bitcoin mining giant Ebang has reported a 50% drop in its revenue in the first half of 2020, with the report coming after quarters of otherwise strong growth for the young company.

Coronavirus smashes Bitcoin miners.

The operation and maintenance of the Bitcoin require vast amounts of power to feed into the network, particularly for the computers that calculate millions of problems per second and industrial coolers that keep the machinery cool and prevent heat-based fires from taking place and damaging the setup.

This leads to the high costs of running a bitcoin mining operation, like Ebang’s: then the firm is now battling those with the added ill-effects of the coronavirus.

The filing has shown the net revenue for Ebang that fell to under $11M so far this year, down to over 50% from the $22M figure comparing to 2019.

Dong Hu, the CEO of Ebang, declared that the drop in revenue was wholly a result of the continuing pandemic.

He also stated that the chip suppliers, such as Nvidia and Taiwan Semiconductor, are taking steps to protect their business in the economic downturn by diminishing the capacity while facing a shortage in the supply of raw materials move has eventually affected Ebang.

Though Ebang didn’t lose everything, Hu said in the file that the “turbulent social and industrial environment” has led the firm to take definite practical measures that have allowed the business operations to continue normally.

The New Bitcoin Exchange and Services for Ebang

Hu has detailed the Ebang will continue developing an expanded number of projects in the cryptocurrency space like launching an “a blockchain-enabled finan cial business by establishing cryptocurrency exchanges online brokerages” then combines the blockchain-enabled financial businesses with the traditional ones.

He continued:

“Marching into these new fields, we are staying true to our mission in strengthening the technological innovation in our products and services to ensure their competitiveness in the market.”

Ebang was also able to protect an amount of $10M in the operating expenses and losses with business moves and outcomes, as the filings indicate. Thou, the savings were a descent in the crypto mining giant’s bucket that produced a massive $300M in revenue in the year 2018.

In the meantime, Ebang’s plan for a new crypto exchange arises as Bitcoin miners fight the effects of increased complexity for mining new Bitcoin and the high costs associated in doing so.

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