Cryptocurrency
Bitmain Shifts Miner Sales Tactics, Betting Big on Bitcoin Halving Pump
As reported by CoinDesk, “Bitcoin mining colossus Bitmain has rejiggered its sales strategy to reverse a decline in market share following the return of co-founder Jihan Wu to the company’s helm. “At a customer event hosted by Bitmain on Saturday in Chengdu, China, Wu appeared on stage for the first time as the sole chairman […]
As reported by CoinDesk, “Bitcoin mining colossus Bitmain has rejiggered its sales strategy to reverse a decline in market share following the return of co-founder Jihan Wu to the company’s helm.
“At a customer event hosted by Bitmain on Saturday in Chengdu, China, Wu appeared on stage for the first time as the sole chairman and CEO a month after regaining control. Addressing clients and partners, he presented new strategies to restore Bitmain’s waning market dominance.
“In essence, he proposed to sway miners to stick with Bitmain’s products by having the company take on the risks related to cash flow, bitcoin price volatility and electricity costs.
“As such, Bitmain is betting big that bitcoin’s price will jump next year amid the scheduled halving of mining rewards, which will reduce new supply created with each block of transactions. Whether the next halving will actually spark a rally like the first two did is a subject of debate currently.
“While the event was exclusive for customers, screenshots of the firm’s presentation deck seen and verified by CoinDesk show that Bitmain has rolled out three main tactics to appeal to mining investors.
“To begin with, it appears Bitmain has replaced its previous sales strategy, wherein customers had to pay the full amount upfront for mining equipment due for future shipment, with a tiered down payment structure.
“For instance, customers that pre-order 100 to 999 miners can put 50 percent down while larger investors purchasing more than 5,000 units can pay a minimum 20 percent upfront.
“The rest of the payments need to be cleared seven days prior to the actual shipment date. But the upshot is this would shift the short-term cash flow pressure away from customers toward Bitmain itself…”