Bitmain signed a deal with to sell 17,595 of its newest bitcoin mining rigs, called S19 Antminers, to Core Scientific, the Washington state-based mine hosting company said in a press release on June 26.
Why it matters: The deal is Bitmain’s largest known sale of the S19 Antminers yet. It could indicate that the worst is over for the Beijing-based manufacturer.
- Chaos has overtaken Bitmain in the last couple of months, as its two co-founders fight for control. Co-founder Zhan Ketuan stopped product deliveries in early June amid a battle for control of the company.
- The announcement comes less than a week after Bitmain’s dueling co-founders came to an agreement to resume product deliveries.
- The underlying leadership question is unresolved, as a lawsuit between the rival camps continues. So long as the litigation continues, product deliveries are still in a precarious situation.
Details: Bitmain will deliver the S19s over the next four months, the press release said. Core Scientific will deploy them in their 655,000 square feet of data centers across the US.
- Core Scientific sells the processing power of mining rigs to its “growing list of clients.”
- This is the first time Bitmain’s S19 Antminer will land in the US since its release in February 2020.
- The two companies have been working on the deal since the beginning of the year but faced delays due to Covid-19, Forbes reported.
- Core Scientific did not disclose the price of the 17,595 S19 Antminers.
Core Scientific has received and begun testing the first of Bitmain’s newest ASIC miners, and has seen material success in increasing existing hashrate to achieve a 110 TH/s ± 3%.Kevin Turner, President & CEO of Core Scientific
Context: Bitmain has had two rival CEOs since Zhan seized control of the Beijing arm of the company in May, which runs Bitmain’s manufacturing operation in Shenzhen. Wu Jihan ousted Zhan back in October 2019. He remains in control of offshore sales and procurement through Bitmain’s Hong Kong affiliate.
- Core Scientific appears to be planning on capitalizing on growing hash rates in the US. Observers often use hash rate measures to gauge overall activity in the mining of bitcoin and other cryptocurrencies.
- China, which offers cheap hydroelectric power, still dominates bitcoin mining with about 70% of the global hash rate, according to a study by the University of Cambridge.
- Core Scientific has been building a relationship with Bitmain for some time. In late May, it announced plans to bring the company’s official training program for Antminer maintenance to the US for the first time.