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Estimates reveal mining firm Bitmain raked in over $3 billion USD in 2017

New estimates have revealed that Chinese cryptocurrency mining manufacturer Bitmain could have accumulated more than $3 billion USD in profit in 2017 – rivaling firms such as Nvidia.

Beijing startup Bitmain might well be crowned the new king of the Bitcoin mining industry, as new reports from financial analysts at Bernstein have posited that the company could have made a conservative profit of anywhere from $3-4 billion USD in 2017.

The news is staggering, as the indicator could essentially place the company on the same podium as Nvidia; and while the latter has had some 24 years to cement its business, Bitmain has apparently notched the same score in just four years after entering the market.

The company is most prolific for the sale of its Antminer Bitcoin mining rigs which can vary in price from several hundred to thousands of US dollars, and the firm further operates mining pools where users can buy-in together to minimize their capital outlay.

Bernstein now estimates that Bitcoin controls anywhere from 70-80% of the total market share for Bitcoin miners and ASICs.

Bernstein analysts, however, have made the point that a majority of Bitmain’s revenue was generated through selling mining rigs powered by the company’s chipsets – arguing that “the rest was largely generated by mining itself and, to a much lesser extent, by collecting management fees from the mining pools it operates and renting out the mining power of its mining farms through cloud services.”

A booming market

While Bitmain might be leading a burgeoning new market, the company is by no means the only player driving hefty profits. Recent news reveals that manufacturers producing Graphics Processing Units (GPUs) as well as Application-Specific Integrated Circuit (ASIC) have seen rapid growth fuelled by new interest in cryptocurrency mining.

Specifically, firms such as Nvidia have witnessed share price growth from $117.31 to $213.70 in the period of one year alone, while TSMC’s share prices similarly grew from $184.50 to $239.00 USD in the same time period.

New players such as Samsung and Kodak are set to enter the arena, where the former will begin producing ASICs and the latter plans to debut its own KashMiner rig in its Rochester headquarters in New York.

Have your say!

What are your thoughts? Could investing in Bitcoin mining firms be an easy path to profit? What could be next for the industry as a whole? Be sure to let us know on Twitter – join the conversation @coininsidercom!