Dilemma of mining machine manufacturers

Before I knew it, many of my familiar friends had already left the industry. Before, some of them were blockchain media reporters, institutional investors, market software analysts, and exchange coin listing staff...

At present, they have only one common identity: retired people. Among them, there are many staff members of the mining machine manufacturers we are going to talk about today.

As the head of the blockchain industry chain, mining machine manufacturers are recognized as the most profitable link besides exchanges. However, their days are not as glamorous as outsiders see.

Take Canaan, which has the halo of "the first blockchain stock", for example. Recently, some media have reported how Canaan broke the hearts of investors and its stock price has plummeted to garbage... Although there are good news, it has not changed Canaan's tragic situation.

It’s hard! It’s hard for miners! It’s hard for mining machine dealers! It’s hard for mining machine manufacturers too…

01

Each family has its own way of playing

The mining industry has been bumpy all the way. Mining machine manufacturers have also been eliminated or "emerged" in the great waves.

Li Gaoyan (pseudonym), a senior miner, told Lieyun Finance that at present, only Ant and Shenma are doing relatively well, while the others are not having an easy time.

Luo, the CEO of Cheetah Miner, also told Lieyun Finance that mining is a high-risk industry. Many mining companies have withdrawn from this industry, including now, because the cost is too high, not to mention those without chip production capabilities. Chips are not available when the market is good, and they cannot make money when the market is bad. They have no core competitiveness at all. Some mining machine manufacturers have switched to mining farms. (PS: There are many mining farms and few mining machines in the market this year. In the case of oversupply, life in mining farms is not easy.)

He also said that few mining machine manufacturers are doing well, but those that are doing well are OK. Cheetah Mining Machine has sales of more than 1 billion yuan, and F5 has lost some money, but not much. This industry depends on the market, which changes every three to four years, and each company has its own way of playing. And development also depends on the way it plays.

When it comes to gameplay, some mining machine manufacturers have chosen to go public.

On June 17, mining machine manufacturer Ebang International updated its prospectus, planning to issue 19,323,600 shares, with an offering price range of US$4.5 to US$6.5, and a maximum fundraising of US$125 million (US$90 million when Canaan went public). The stock code is "EBON" and the listing location is Nasdaq in the United States.

"Ebang International's move to the US stock market was also a helpless move. It failed twice in its previous attempts to list on the Hong Kong Stock Exchange. This is not Ebang International's fault. Bitmain and Canaan Technology also failed in their attempts to list on the Hong Kong Stock Exchange." The report of Leidi.com is true. How difficult is the road to listing? Without practice, you have no right to speak.

As of now, Ebang International has not announced the specific listing time. Many people are skeptical about whether the listing process can be smooth.

02

Whose fault is it for delayed delivery?

In fact, the gossip in the blockchain circle is similar to that in the entertainment circle. Especially in the currency circle, the gossips of exchanges, project owners, investors, etc., let the gossip-eating crowd put down one piece, and there is another piece. Yesterday, a certain project owner ran away; today, a certain exchange was closed... How can the gossip-eating crowd be so satisfied! In the mining circle, there are also many gossips. Let's mainly talk about the mining machine manufacturers.

In July 2019, some mining machine manufacturers delayed delivery due to power supply problems. Mining machine dealers encountered "two ends of the dilemma" and finally raised the banner of rights protection. Miners, mining machine dealers, and mining machine manufacturers are all in an awkward situation. Miners cannot get the mining machines they have reserved and cannot earn the dividends of that wave of market conditions, which is urgent; mining machine dealers cannot deliver machines to miners and face "repayment" from miners, which is urgent; mining machine manufacturers cannot provide specific models of mining machines, which is urgent. Under the "three urgent" situations, who can take this responsibility?

In the industry, delays happen from time to time, and there are many conflicts caused by them. No matter what the reason for the delay, it is a headache for all parties involved. For example, Cheetah Miner was caught in a "runaway storm" recently.

The situation is that Cheetah Mining has moved to a new location, but more than one whistleblower claimed in WeChat Moments: "Cheetah Mining is deserted, the company is a shell company, and they still want to make money in the mining circle..."

The source of this turmoil is the delayed delivery of Cheetah Mining Machines in 2019. Lieyun Finance interviewed one of the whistleblowers, Yang Xiaoming (pseudonym), who told Lieyun Finance that the mining machines they purchased in August 2019 were delayed in delivery, and after many communications, the problem was not resolved. No less than 10 other people had similar experiences. In his eyes, Luo Yonghao, the owner of Cheetah Mining Machines, is a "rogue" and Cheetah Mining Machines is a "rogue company."

Screenshots of content provided by the whistleblower (partial)

Regarding this matter, Lieyun Finance also interviewed Luo Yonghao, the owner of Cheetah Miner, and Luo Yonghao also made an exclusive response to this matter. He said, "The F5 was made in October last year, and many customers shipped it in November-December. However, due to the delay of Samsung chips, the customer's machine was also delayed, with a maximum delay of about 15 days, and some computing power was supplemented for the customer. We also communicated with customers who had opinions, and we also let them refund part of the money if they could. Because the price fell at that time, some customers asked for a refund, and we couldn't refund all of them. If we wanted to refund all of them, there were tens of thousands of units at that time. Some customers wanted a refund and wanted a full refund before the delivery date. The price of the mining machine fell, and we also communicated with the other party to reduce the loss. Some customers were unwilling to do so, so they used not-so-good methods to discredit us, but we never closed the door and have been negotiating with them."

There are some discrepancies in the details of the two statements. However, according to Lieyun Finance, both parties have already gone through the legal process, so we will not discuss the details. We believe that the relevant departments will give a fair and reasonable solution, and we will continue to pay attention.

03

The mission of the spectators is to eat spectators?

"In the blockchain circle, the mining circle is regarded as the most low-key and reliable circle because it is closest to the entity. If even this link runs away, wouldn't people be even more panicked?" said a netizen.

However, in fact, most people in the industry do work or operate in good faith, but there are also precedents of some bad mine owners and mining machine manufacturers running away. In the article "Those Years, We Stepped into the Pitfalls Together!" of Lieyun Finance, we introduced the pitfalls that miners have experienced.

It really fits the saying that there is nothing that bad merchants or scammers can't do, only what you can't think of. Here I also hope that no matter what kind of friends you are, you must keep your eyes open when investing to avoid being scammed. After all, the mission of the melon-eating crowd is not just to eat melons.

Regarding the future development of mining machines and computing power, Luo believes that the speed of mining machine updates and iterations will slow down. Currently, it is difficult to reach 6nm at 8nm and 7nm. If the price of the currency does not fall sharply, the computing power will continue to increase steadily. By the end of October, the total network's new computing power is expected to be 30-40E. If calculated based on 110E, it will reach 140-150E. After November, the total network computing power should be more.

As Lao Luo mentioned, it all ultimately depends on the performance of the market!

The market is back, some people who have retired will return, and each link in the chain will be able to live a relatively easy life. At this moment, perhaps everyone is looking forward to a good market.