Cryptocurrencies
World's Top Crypto Miner May Be Losing Its Edge, Bernstein Says
- Bitmain is facing growing competition as it plans for an IPO
- Analyst says TSMC should require full prepayment from Bitmain
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Bitmain Technologies Ltd., the designer of cryptocurrency mining chips that’s planning a landmark initial public offering, may be losing its technological edge, according to Sanford C. Bernstein & Co.
The Beijing-based company, co-founded by 32-year-old billionaire Jihan Wu, may need to write down the value of its inventory as makers of rival mining gear catch up, analysts led by Mark Li at Bernstein wrote in a report dated Wednesday. Taiwan Semiconductor Manufacturing Co., which produces chips designed by Bitmain, should ask the company to make full prepayments and refrain from adding capacity solely for crypto-related demand, according to the Bernstein analysts.