Ebang Hopes to Capture a ‘Competitive Edge’ After Developing a Next-Generation 6nm Bitcoin Mining Chip
The publicly-listed bitcoin mining rig manufacturer Ebang has announced the completion of a new 6nm ASIC mining chip. Ebang believes the next-generation mining chip will give the firm’s ASIC products a “competitive edge” in the ambitious bitcoin mining industry.
Mass Production of 6nm Chips to Begin When Market Conditions Become Suitable
During the last few weeks, Bitcoin’s hashrate has been climbing to new heights as the network tapped 190 exahash per second on March 22, 2021. The price of bitcoin (BTC) has also helped propel bitcoin mining profits, but improved mining rig semiconductors have also increased the hashpower a great deal. Firms like Bitmain, Canaan, Microbt, and Ebang have seen massive demand in 2020 and into 2021. Most of these manufacturers are out of stock after selling mass quantities of ASIC miners to institutional buyers. On March 17, the China-based Ebang International Holdings Inc. (Nasdaq: EBON), announced the development of a new 6nm ASIC mining chip.
The standard chips used today in some of the top mining devices are between 12nm, 10nm, and 7nm. A 6nm chip would be an improvement from today’s ASIC standards, and Ebang thinks the new product will bolster the company’s performance. When market conditions become more suitable, Ebang said it will begin mass production of the 6nm chip. The Chairman and CEO of Ebang, Mr. Dong Hu, believes the development of the chip is a watershed moment for Ebang’s research and development (R&D) team.
“The completion of our 6nm ASIC chip is a significant milestone of our constant R&D efforts in recent years,” Mr. Dong Hu said during the announcement. “We have devoted a lot of resources to building our R&D team and product innovation and iteration. Looking forward, we plan to continue developing ASIC chips designed for more mainstream cryptocurrency machines, which we believe will increase our revenue in the digital currency business and optimize our product offering structure along the blockchain industry value chain.”
Ebang Launches Invite-Only Beta Exchange, Stock Jumps 48% Since January 2021
The Hangzhou mining rig manufacturer Ebang also launched the company’s invite-only beta cryptocurrency exchange. Beta testing began on March 15 and Ebang’s CEO Mr. Dong Hu said that the exchange would also “accelerate the company’s development.” Since the exchange launch, Ebang’s shares listed on Nasdaq jumped in value. Since January 2021, Ebang’s shares have increased in value by 48.45%.
As far as the new 6nm chip production is concerned, Ebang has highlighted that commercialization of such chips is not guaranteed. The company plans to continue developing ASIC mining rigs for bitcoin with hopes to gather widespread appeal. The company has stiff competition with manufacturing firms like Bitmain, Canaan, Microbt, Innosilicon, and Strongu.
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Author: Jamie Redman