Chinese Bitcoin Mining Firm Bitmain Made $3 to $4 Billion in Profits Last Year, Says Analyst

Bitmain, a privately held Chinese firm that manufactures Bitcoin mining hardware and runs its own mining operations, made $3 billion to $4 billion in profits in 2017, according to estimates by Bernstein Research released this week.

Bitmain manufactures specialized hardware that performs the cryptographic functions that ensure the security of cryptocurrencies including Bitcoin. According to CNBC, Bernstein found that Bitmain adjusted the price of its hardware as the price of Bitcoin rose, increasing its profits. Bitmain pioneered the creation of specialized chips for cryptocurrency mining, known as asics, and Bernstein estimated it currently has 70 to 80 percent of the market for Bitcoin mining hardware.