- China-based Bitmain on Tuesday announced its specialized digital currency mining system for ethereum.
- The company said it will ship its ethereum mining rig in mid-to-late July for $800 each.
China-based Bitmain on Tuesday revealed its specialized digital currency mining system for ethereum, which analysts have predicted could hurt demand for graphics cards.
"We are pleased to announce the Antminer E3, world's most powerful and efficient EtHash ASIC miner. Ordering limit of one miner per user and not available in China. Limited stock, order here now," Bitmain tweeted on social media Tuesday.
Bitmain said it will ship its ethereum mining rig in mid to late July for $800 each.
Cryptocurrency miners use graphics cards based on AMD's and Nvidia's chips to "mine" new coins, which can then be sold or held for future appreciation. Digital currency ethereum is up more than 800 percent over the past 12 months, according to Coinbase data.
Bitmain dominates the "bitcoin" industry with its specialized ASIC chips that are more efficient at mining than graphic chips from AMD and Nvidia. Bernstein has said Bitmain likely made as much profit as Nvidia did last year. Analysts estimate that most of Bitmain's revenue is generated by selling mining rigs powered by the company's chips.
And now Wall Street is concerned the company will dominate the ethereum digital currency mining market.
Susquehanna on Mar. 26 lowered its price targets for AMD and Nvidia shares, citing impending competition from Bitmain in ethereum mining.
The firm estimated ethereum mining-related sales accounted for about 20 percent of AMD's sales and 10 percent of Nvidia's revenue.
Nvidia declined to comment. AMD sent this following statement:
"Revenue associated with Blockchain was approximately mid-single digit percentage of revenue for AMD in 2017. We believe that GPUs will continue to provide value to blockchain applications for the foreseeable future. However, the largest long-term growth drivers for AMD are across our datacenter, PC, and gaming businesses and our Q1-2018 and full year 2018 guidance reflects that."