Cryptocurrency mining hardware giant Bitmain Technologies Ltd. has reportedly incurred a net loss of $310 million in the first quarter of this year.
Bifurcating the net figure, Bitmain suffered losses of $345 million and $280 million in January and February, respectively, and made a profit of $315 million in March, according to a report from Tencent’s news portal QQ.
Weak demand for Bitmain’s 16nm range of mining machines, which were sold at lower prices to clear inventory, was reportedly the key reason for the loss. Looking forward, sales of the firm’s recently released 7nm mining machines are expected to lead to a profit.
Bitmain’s initial public offering (IPO) in the U.S. is also “coming soon,” aiming to raise over $1 billion, per the report. Earlier, there were reports that the company is looking to raise $300-$500 million from the offering. Bitmain also attempted to go public in Hong Kong in the past, but the application lapsed earlier this year.