Bitmain, a cryptocurrency mining giant reportedly hints towards releasing new mining hardware hinged on the 2020 Bitcoin (BTC) block reward halving. As reported by English-language Asia news outlet South China Morning Post (SCMP) on March 27.
The exchange has been struggling for the last six months due to the market volatility triggered redundancies and a failed public flotation. Reportedly, the claim that the next year’s event could reverse its fortunes. SCMP cited “a company source with knowledge of the plan.”
What is Halving?
Block reward halvings will reduce the amount of BTC awarded to miners who successfully solve the algorithms to validate blocks of transactions. The reward size will decrease from 12.5 BTC to 6.25 BTC per block in May 2020.
Taking a cue from previous such events, sources anticipate Bitcoin prices will increase in advance possibly starting from this June. SCMP wrote, citing the unnamed source close to Bitmain as saying:
“Bitmain is now betting that its next flagship product scheduled to be released by the end of this year will turn out to be a winner in the mining gear market, capturing an expected rally.”
Even with current problems, Bitmain continues to release new products with the T17 and S17, both of which will utilize its latest 7nm chip technology, currently the focus of attention. The company also released the Z11, earlier this month. It is a dedicated ASIC miner for Proof-of-Stake cryptocurrencies.