Just How Profitable is Bitmain?

Cost of Production

Profit, as any high schooler knows, is the difference between amount earned minus the amount spent. The amount earned per S9 sold is $1200 at the time of this writing. The amount spent is the harder part to figure out.

Antminer board with BM1387 chips

Profits from Mining

With the above, we can recalculate just how much Bitmain makes from their mining operations. We know they’ll get roughly 100,000 BTC/yr ($120M/yr) if their hashing power stays at around 13.2% (500PH/s for now). The electricity costs + data center costs are roughly $23M/yr. Their mining equipment costs are a lot less than my last estimate from before (40,000 * $500 = $20M/yr). They’ll make $77M this year at current BTC rates.

Profits from Selling

Given the above, we can also estimate how much money Bitmain makes from selling equipment. If we estimate that around 2/3 of the network hashing power is supplied by their mining chips (some say less, some say more), that means around 53% of the mining equipment hashing right now is controlled by their customers, but not Bitmain. That’s roughly 200,000 S9 units, each of which give a $700 profit to Bitmain. That’s a total of $140M in profit from selling the equipment.

Is Bitmain Using Covert ASICBoost or Not?

As I’ve shown, $2M really isn’t very much for them and given their scale, they probably have a much better return on investment on other projects. We know for example, that they don’t liquid-cool their miners which BitFury does. If we assume Bitmain could get the same increase in hash rate (30%) as BitFury does through liquid cooling, their mining profits would increase at least $20M, a much better return on investment than covert ASICBoost.


Bitmain will probably make around $200M-$250M in profits this year just from their BM1387 chip (they have other products, including a Scrypt ASIC). Even after including ongoing R&D and other future investment, they are likely worth well over $1 Billion as a business and are probably the largest and most profitable company in Bitcoin.



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Jimmy Song

Jimmy Song


Bitcoin Educator, Developer and Entrepreneur. Book: https://amzn.to/2RSlnTb PGP Fingerprint: C1D7 97BE 7D10 5291 228C D70C FAA6 17E3 2679 E455