Partnership with Bitcoin mining consultants, Bitmain is probably expand in South America

By Selena 12/13/19 8:53 AM

After deciding on the restructuring strategy of Bitmain’s business strategy, the Bitcoin mining giant is trying to regain its foothold in the market. To accomplish that wish, Bitmain initially cooperated with two Bitcoin mining consulting companies, Bit5ive and Fastblock.

Bitmain and efforts to regain market position

On December 12, 2019, Bitmain announced its cooperation with Bit5ive and Fastblock. These are two companies in the field of cryptocurrency mining consulting. It seems that through this partnership, Bitmain is seeking to use them as an official distributor for Bitcoin Antminer mining hardware in South America.

“We’re hoping to leverage the extensive contacts both companies have in the region. Bitmain chose both companies because of their expertise in logistics, customer service, and consultancy,” Bitmain stated.

Referring to the new partnership and the move to pursue expansion in the South American market, Bitmain CEO Irene Gao said:

“South America continues to be an essential region for the cryptocurrency mining sector. Our collaboration with Fastblock and Bit5ive will help us to build on the relationships we have with the mining community on-the-ground and instill trust in the sales process of Antminers.”

At the end of November, new features of Antminer 17 were announced. This includes new hashrate enhancements and energy efficiency enhancements.

After returning, co-founder Jihan Wu continues to consolidate his power

Meanwhile, co-founder Jihan Wu continues to strengthen his control over the company amid the ongoing power struggle. He is reportedly holding a private meeting with Bitmain executives.

Jihan Wu, CEO and Bitmain’s only chairman

This is the latest move in the struggle between Wu and his deposed co-founder Micree Zhan. Zhan is seeking to take legal action against Wu, accusing some of Bitmain officials of treason.

After a challenging 2018 and a fading year in 2019, Bitmain has lost a significant part of its Bitcoin mining dominance. However, the company is seeking to submit an IPO in the US with its competitor Canaan, which has completed a similar public transaction.

In the start of narrowing operations at the end of 2018, Bitmain began pursuing expansion plans, revealing a 33,000-acre Bitcoin mining facility in Texas. The company is also planning to increase the hash rate by up to 50% with purchase orders for 600,00 new cryptocurrency mining chips.