Bitmain: The Rise, Challenges, and Evolution of a Crypto Mining Giant

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Bitmain Technologies Ltd., widely known as Bitmain, stands as one of the most influential players in the global cryptocurrency and semiconductor industries. Founded in 2013 and headquartered in Beijing, China, the company has played a pivotal role in shaping the infrastructure of blockchain mining through its innovative ASIC (Application-Specific Integrated Circuit) chips and ANTMINER hardware. Over the years, Bitmain has evolved from a niche crypto hardware startup into a multinational tech enterprise with ambitions in artificial intelligence (AI), cloud mining, and chip design.

This article explores Bitmain’s journey—from its founding and meteoric rise to its internal conflicts, strategic shifts, and ongoing influence in the digital economy.

Founding and Early Innovations

Bitmain was co-founded in 2013 by Wu Jihan, a financial analyst and early Bitcoin advocate, and Zhan Ketuan, an entrepreneur with a background in IP solutions. Their vision was to build high-efficiency mining hardware tailored for cryptocurrencies like Bitcoin, leveraging custom ASIC chips that outperformed general-purpose GPUs.

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Their first major product, the ANTMINER S1, launched in 2013 with a hash rate of 180 GH/s. It quickly gained traction among miners due to its efficiency. Within months, the company released the ANTMINER S2, boosting performance to 1 TH/s—marking a significant leap in mining technology at the time.

By focusing on vertical integration—designing chips, building miners, and operating mining pools—Bitmain established a dominant position in the ecosystem. By 2018, it had become the world’s largest manufacturer of Bitcoin mining ASICs, capturing an estimated 70–80% of the global market share for mining hardware.

Core Products and Services

Bitmain’s business revolves around three core pillars: mining hardware, mining pools, and cloud mining services.

1. ANTMINER Series: Powering the Blockchain

The ANTMINER series is Bitmain’s flagship product line. These devices are engineered for maximum efficiency in proof-of-work consensus networks. Over the years, the company has released several generations:

These machines are used to mine various cryptocurrencies including Bitcoin (BTC), Bitcoin Cash (BCH), Litecoin (LTC), and Dash, making Bitmain a critical enabler of decentralized network security.

2. Mining Pool Operations

Bitmain operates two major mining pools:

As of recent data, these pools collectively command around 10.57% of Bitcoin’s total network hashrate and approximately 38.37% of Bitcoin Cash’s—giving Bitmain substantial influence over transaction validation and network governance.

3. Cloud Mining with Hashnest

Through its subsidiary Hashnest, Bitmain offers cloud mining services to over 400,000 users worldwide. This platform allows individuals to lease hashing power without owning physical hardware, lowering entry barriers for retail investors interested in cryptocurrency mining.

Expansion into Artificial Intelligence

In 2017, Bitmain attracted $50 million in funding from top-tier investors including Sequoia Capital and International Data Group (IDG) to develop AI-focused chips. The move signaled a strategic pivot beyond crypto mining toward broader semiconductor applications in machine learning and edge computing.

While AI ambitions were initially strong, internal disputes and market volatility slowed progress. Nevertheless, Bitmain continues to explore dual-use chip technologies that serve both mining and AI inference workloads—an area gaining renewed interest amid rising demand for efficient compute solutions.

Financial Performance and Market Recognition

Bitmain achieved profitability by early 2018 and reported a net profit of $742.7 million** in the first half of that year alone. In 2017, its revenue reached approximately **$2.5 billion, rivaling established tech firms despite its relatively short history.

The company earned recognition on multiple prestigious lists:

By 2021, Bitmain’s valuation was estimated between $8 billion and $9 billion, reflecting sustained investor confidence despite regulatory headwinds.

Internal Conflict and Corporate Restructuring

One of the most defining chapters in Bitmain’s history was the public feud between its co-founders.

In late 2019, Wu Jihan removed Zhan Ketuan from all executive roles via a board resolution—a move contested legally and physically, culminating in a dramatic "battle for the business license" in May 2020. The conflict paralyzed operations temporarily and damaged investor trust.

After prolonged negotiations mediated by shareholders, a settlement was reached in January 2021:

This division significantly reduced Bitmain’s market valuation—from RMB 80 billion (~$11.5B) at its peak to about RMB 30 billion (~$4.3B)—and delayed potential IPO plans indefinitely.

Regulatory Pressures and Strategic Shifts

In June 2021, Chinese authorities cracked down on cryptocurrency mining activities, prompting Bitmain to halt sales of new miners in global spot markets to manage inventory pressure. This decision reflected broader industry challenges as China phased out crypto operations.

Despite this setback, Bitmain adapted by focusing on:

The company also maintained its commitment to research and development through donations to academic institutions:

Subsidiary Controversies: The Sophgo Sanction Case

In January 2025, Bitmain’s subsidiary Sophgo Technology (算能科技) was added to the U.S. Department of Commerce’s Entity List for allegedly violating export controls by facilitating the transfer of advanced TSMC chips to mainland China.

This development highlighted growing geopolitical tensions surrounding semiconductor technology. While Sophgo denied direct ties to Huawei—whose own AI chips were found to contain similar designs—the incident underscored the risks faced by Chinese tech firms operating in dual-use technology spaces.

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Frequently Asked Questions (FAQ)

Q: What does Bitmain do?
A: Bitmain designs and manufactures ASIC chips and mining hardware (ANTMINER series), operates large-scale mining pools (BTC.com and ANTPOOL), and provides cloud mining services via Hashnest.

Q: Is Bitmain still profitable?
A: While exact figures are private post-IPO withdrawal, industry estimates suggest Bitmain remains profitable through hardware sales and mining operations, especially during bull markets.

Q: Who owns Bitmain now?
A: As of 2021, Zhan Ketuan regained full operational control after a legal settlement with co-founder Wu Jihan, who exited to lead Bitdeer.

Q: Can individuals buy ANTMINERS directly?
A: Yes, though availability fluctuates based on market demand and regulatory conditions. Sales are often conducted via pre-orders or auctions.

Q: Why did Bitmain stop selling miners in 2021?
A: Following China’s crypto mining ban, Bitmain paused spot sales to manage inventory oversupply and stabilize pricing amid collapsing demand.

Q: Is Bitmain involved in AI development?
A: Yes—though scaled back due to internal challenges, Bitmain continues R&D in AI chips derived from its ASIC expertise, targeting edge computing and inference tasks.

Conclusion

Bitmain’s story is emblematic of the broader evolution of blockchain technology—from speculative beginnings to mature industrial infrastructure. Despite facing internal strife, regulatory crackdowns, and global scrutiny, the company remains a cornerstone of the crypto mining ecosystem.

Its innovations have powered millions of transactions across decentralized networks, while its ventures into AI and semiconductor design reflect a long-term vision beyond digital currencies.

As blockchain adoption grows and energy-efficient computing becomes paramount, companies like Bitmain will continue to shape how we think about trustless systems, computational power, and technological sovereignty.

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