Frost & Sullivan has recently predicted MicroBT, which manufacturers microchips for cryptocurrency mining, will grow over fivefold to $17 billion in the next 5 years. Yang Zuoxing, a former employee of mining equipment giant Bitmain Technologies, is giving all his endeavors to give a tough fight with China’s tech giant.
After completing Ph.D. in mechatronics in 2001, Zuoxing involved himself with many firms specialized in designing hardware and low-wattage chip before he commenced working with Bitmain Technologies. At Bitmain, he had the responsibility of designing the innovative technologies. When the company founders Micree Zhan and Jihan Wu dropped his request of acquiring a stake at Bitmain, he contemplated to give up his job. After quitting Bitmain in June 2016, he established his own start-up MicroBT. He claims that his firm’s mining gear is quite good in quality, if not better than Bitmain’s. He also commented, “We complete in every area.”
The newly born MicroBT is challenging Bitmain’s dominance in the market for specialized cryptocurrency mining chips. Seeing the overall growth and potential in this company achieved in the last around 2 years, Frost & Sullivan has predicted its fivefold growth by 2022 despite the poor condition in the cryptocurrency assets’ selling figure this year, as reported by Livemint. Bitmain executives had refused to comment but did not avert the growing competition as a potential risk for its business.
“MicroBT’s flagship Whatsminer M10 can deliver better power efficiency than Bitmain’s S9i. It is working on upgrades to stay competitive as Bitmain rolls out new products,” Zuoxing opined, as reported by Live Bitcoin News.
According to the IPO filing, the cryptocurrency mining giant Bitmain earned $743 million on $2.8 billion of sales in the first half, whereas MicroBT gained a financial profit of around $48 million out of $186 million in sales during the same period. Although Bitmain is still continuing to have dominance over the market, it may not last long due to the presence of such strong competitor(s). However, Zuoxing did not reveal more detailed financial information related to his company.[The views and opinions expressed in this article are those of the authors and do not necessarily reflect the views and/or the official policy of the website. ]