Former Bitmain chip designer Yang Zuo Xing entered the crypto mining race in 2016, and he intends to score big against his former company. With market research company Frost & Sullivan claiming that the crypto mining sphere will grow to $17 Billion by 2022, the competition is expected to get tougher.
In an article by Bloomberg today, October 9, Yang Zuo Xing said that his new crypto chip company, MicroBT, boasts top-of-the-line mining gears, which he believes to be equally good—if not better—the Bitmain’s.
David And Goliath
Yang left Bitmain in 2016 after its Co-Founders Micree Zhan and Jihan Wu declined his request to have a stake in the company. One month after his departure, he started his own company, MicroBT, and has recorded $48 Million in profit and $186 Million in sales during the first half of this year. Bitmain obviously earned more: it recorded $743 Million in $2.8 Billion at the same timeframe.
However, Yang has already begun to poke on the number one spot in crypto mining. He has already amassed over $22 Million from investors and is well on his way to convince financial managers in China for additional funding. He is mulling over an IPO next year, and is considering to join a race to tap public equity markets which include Canaan and Ebang International Holdings.
As to the crypto mining arms race, Yang claims that his products are as good Bitmain, saying that they “compete in every area,” and that Bitmain’s technology may be great, “but ours is too.”
The Unsung Hero
But the story does not end there.
According to an article by China-based financial publication Caijing, which was translated to English by Pixelmatic CEO and Blockstream CSO Samson Mow in a tweet, Yang Zuo Xing was an ace chip designer of the firm, saying that Yang’s chip designs were critical in helping Bitmain survive the 2015-2016 bear market. “He is also the reason that they were able to capture a large market share,” Mow’s translation read.
He continued in another tweet:
After Yang Zuo Xing left, Bitmain was unable to produce any new chips successfully. Bitmain’s 16nm BM1X89, 12nm BM1X90, 10nm BM1X93, all failed. Bitmain is working [with] 7nm chips now but gains are minimal.
Yang could also be one of the reasons why the crypto mining goliath is struggling to hold its much-anticipated initial public offering (IPO), as investors are beginning to either jump ship or to deny their involvement altogether, Mow’s translation explained.
As to the Bloomberg article, Bitmain declined to comment on the topic.
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