Bitmain takes another hit amidst anti-China Trump policies

Bitmain, a leading mining hardware manufacturer is taking another financial flunk after Trump administration changes the Antminer S9 status to electrical machinery rather than an information technology related hardware.

The reclassification of this flagship Bitmain product has lowered the company’s position.

Antminer brought in more than 2 billion dollars in revenue for China-based hardware vendor Bitmain in 2017 alone, but the company took almost a 700 million dollar dip after Trump administration reclassified the hardware in June 2018. The dip is almost 50% below the predicted amount.

After the move by the United States Trade Representatives, the miner is now facing a 27.6 percent increase in the rates due to combined taxes as electrical machinery and a Chinese good.

Bitmain, on the other hand, is now seeking to raise more 3 billion United States dollars in funds from Hong Kong through initial public offering (IPO). While, on the other hand, competitors GMO and Canaan and are also running for similar IPOs.

Amidst the anti-China Trump policies, Bitmain is also facing tough competition from GMO and Canaan as they are ready to launch mining hardware that is more efficient than Antminer S9.

Experts believe that this competition game would only affect the company’s management rather than the policy maker’s decision and their subsequent policies.