Bitmain launches new Ethereum mining machine? May affect AMD and Nvidia's business

According to foreign media reports, Bitmain, a China-based Bitcoin mining hardware manufacturer, announced on Tuesday that it has developed a digital currency mining machine specifically for Ethereum mining. The company said it will send mining machines to users in mid-to-late July, with each unit priced at $800.

This means one of Wall Street's biggest concerns about AMD and Nvidia has come true.

Bitmain on Tuesday revealed its own digital currency miner specifically designed to mine Ethereum, which analysts predict could hurt demand for graphics cards.

"We are pleased to announce the global launch of the most powerful and efficient Ethereum mining machine, Antminer E3," Bitmain said on Twitter on Tuesday. Each user is limited to one unit. It is not available in the Chinese market yet. Order now."

Bitmain said it will start shipping its Ethereum mining machines to users in mid- to late July, priced at $800 each.

Cryptocurrency miners use graphics cards based on AMD and Nvidia chips to "mine" and then sell or save them in the hope of future appreciation. According to Coinbase data, the market value of the digital currency Ethereum has increased by more than 800% in the past 12 months.

Bitmain dominates the Bitcoin industry chain, and its dedicated ASIC chips are more efficient than AMD and Nvidia graphics chips for mining. Bernstein has said that Bitmain may be doing about the same as Nvidia did last year. Analysts estimate that most of Bitmain's revenue is obtained by selling mining equipment equipped with the company's dedicated chips.

And now Wall Street is worried that the company will dominate the digital currency mining market.

Susquehanna lowered its price targets for AMD and Nvidia stocks on March 26, citing Bitmain’s upcoming competition in the Ethereum space.

The firm estimates that Ethereum mining-related sales account for around 20% of AMD’s sales and 10% of Nvidia’s revenue.

AMD and Nvidia did not immediately respond to requests for comment.