Industry Research Report | IPO Observation Report of the First Batch of Blockchain Mining Machine Companies

Introduction to this report:

In 2018, Canaan Creative, Ebang International and Bitmain successively submitted listing applications to the Hong Kong Stock Exchange. The three mining machine manufacturers monopolized nearly 88% of the Bitcoin mining machine market, thereby making huge profits. Ten years after Satoshi Nakamoto proposed the concept of Bitcoin, the world's first batch of blockchain startups are about to enter the traditional capital market. Who can become the world's first blockchain listed company?

summary:

The market size of the global integrated circuit industry has grown from US$251.8 billion in 2013 to US$341.4 billion in 2017, with a compound annual growth rate of 7.9%. It is expected that the global integrated circuit industry will further grow at a compound growth rate of 9.0%, reaching US$465.1 billion by 2020.

In the upstream mining machine market for encrypted digital assets, Chinese companies have an absolute advantage in the world in the research and development and design of blockchain mining machine chips. Blockchain mining machine companies represented by Bitmain, Canaan Creative and Ebang International have a monopoly position in the global mining machine market.

The explosion of the crypto asset industry in 2017 boosted the business development of mining machine companies. The sales volume and unit price of mining machines were affected by the expected economic returns of Bitcoin mining. Among them, Bitmain had the highest operating income, which was about 12 times that of Canaan Creative and 16 times that of Ebang International in 2017, reaching 16.452 billion yuan, a year-on-year increase of 806.79%.

The Office of the United States Trade Representative classified Bitmain's mining equipment as "electrical equipment" in June, which carries a 2.6% tariff. The reclassification makes mining hardware subject to an additional 25% tariff under the Chinese goods list, bringing the total tariff rate from 0 to 27.6%. Among the three major companies, Bitmain is expected to be the most affected by the trade tariffs.

At present, mining machine companies are facing the problems of single revenue, unstable main business revenue, and profits greatly affected by the price of coins. Undoubtedly, AI is the next hot spot of the Internet. Like blockchain, the foundation of AI is also computing power. High-speed computing power and data processing are the basic elements of AI.

Risk Warning: The encrypted digital asset market has the risk characteristics of high investment and high volatility, and there are investment risks such as excessive speculation and concept propaganda. At present, the development of blockchain technology is in its early stages, and it will take some time for large-scale commercial applications to be implemented.

This article only studies and explores industry phenomena and does not represent any investment position or opinion.