The release of weak ASICs from Canaan and Ebang affected the profits of mining giants

 The presentation of devices from two major manufacturers of Bitcoin mining equipment surprised the public very much: experts called the new miners a “step backward” and predicted big losses. And they were right.

At the end of spring, 2 large corporations that produce mining devices presented their new devices, which went on sale in June this year. 

Avalonminer 1146 Pro from Cаnaan and its characteristics

Avalonminer 1146 Pro from Cаnaan and its characteristics

Ebang e12 + specifications

Ebang e12 + specifications

It turned out that the devices are significantly inferior to the top models of competitors Bitmain and MicroBT, the power of which is almost two times higher than the new items.

TOP devices for mining BTC at the time of Canaan and EBANG presentations

TOP devices for mining BTC at the time of Canaan and EBANG presentations

Devices were not the best investment

To better understand the difference, compare Bitmain's Artminer s19, which is only the fourth in the ranking, with the new Avalonminer 1146 Pro from Canaan. The former was able to provide the owner with a profit of $ 5 per day, while the minimum daily profit of the new Avalonminer was only 80 cents.

In terms of profitability, MicroBT devices are approximately on a par with Bitmain miners, but they will not be available for sale until October this year.

Yesterday's leaders are losing leadership

It became clear to experts that Canaan and Ebang could not seriously compete with other industry leaders, since after the bitcoin halving on May 11, 2020, the expected “to the moon” did not happen. Users predicted big losses to companies, and from Canaan's reports for the first quarter of 2020, it became known that the company “went into the red” by more than $ 5.6 million. As for EBANG, the company's shares on the Nasdaq dropped from $ 5.23 to $ 4 after an extremely unprofitable 2019.

Both companies cite the COVID-19 pandemic as the main cause of losses, although Internet users are confident that the release of non-competitive devices also played a role.