Chinese Construction Company Turned Mining Firm Lost Over $23 Millions

[traderethereum]

Let them decide what they need to do because their policy will be related to their government regulation which wants to shut down the mining company.
I don't think that they are a loss because of the mining process because they are using a big power of hashrate so they can get big rewards too.
Maybe they reported that they are a loss to prevent from paying the tax, but we never know the truth
I am not too believe with the big company saying that they are losing the profit because before they say that, I am sure that they are collecting big money before especially in 2017-2018.
But let's wait for other information from them, and we will see how they will react later.

[Ayiranorea]

This is true from my knowledge because I invested around $11000 into mining by the days of early 2018. As I wasn't able to mine as the electricity bill is high I searched on Marketplaces to sell the mining equipments and it was quoted to be around $1500. So its a one in ten value. Same I see with the Chinese construction company investment and the present market value. It is not fair to compare such a huge investment with a mere $11000 but the market fall is clearly the same.

[avikz]

Construction business to crypto mining?? What a laughable transition! Consteuction business is a very lucrative business in the emerging economy like China where the government is providing tax rebate and various subsidies to the companies who are associated with construction business. So when you leave a lucrative business and move to a rather uncertain sector, this is what happens! It can be a classic example of a failed vision and failed leadership!

[Vaskiy]

Construction business to crypto mining?? What a laughable transition! Consteuction business is a very lucrative business in the emerging economy like China where the government is providing tax rebate and various subsidies to the companies who are associated with construction business. So when you leave a lucrative business and move to a rather uncertain sector, this is what happens! It can be a classic example of a failed vision and failed leadership!

We can't say it a failed leadership, from my view it is a positive thinking about the market but to the expectation things happened in the opposite way making the entire investment go low in a short time period. If the market of bitcoin have stayed same as that of 2017 now we could have praised him making such a decision of transition from a lucrative to uncertain market.

[Yaunfitda]

Construction business to crypto mining?? What a laughable transition! Consteuction business is a very lucrative business in the emerging economy like China where the government is providing tax rebate and various subsidies to the companies who are associated with construction business. So when you leave a lucrative business and move to a rather uncertain sector, this is what happens! It can be a classic example of a failed vision and failed leadership!

We can't say it a failed leadership, from my view it is a positive thinking about the market but to the expectation things happened in the opposite way making the entire investment go low in a short time period. If the market of bitcoin have stayed same as that of 2017 now we could have praised him making such a decision of transition from a lucrative to uncertain market.

Of course who you gonna blame for what happened to them? Definitely the management has something to do with it. They are in a different sector then they suddenly plunge to a industry which I think they don't have the experience that's why the company failed.

They took the gamble but at the end it didn't pay off, they should put everything, the leadership didn't have any plan B in case their venture in crypto mining will fail.

[pushups44]

It's very risky to mine bitcoin in the middle of a bear market, when electricity costs potentially could rise while profits from bitcoin mined drop. Probably the best time to mine is in the late stage bear to early stage bull market.

[btc_angela]

It's very risky to mine bitcoin in the middle of a bear market, when electricity costs potentially could rise while profits from bitcoin mined drop. Probably the best time to mine is in the late stage bear to early stage bull market.

Maybe someone whisper to the CEO that mining is more lucrative business than construction. But damn the bear market has put another big company out of business, another own bites the dust. They should have done their study first before they went into this business, otherwise you will really sink that fast and it will take years to recover.

[Herbert2020]

It's very risky to mine bitcoin in the middle of a bear market, when electricity costs potentially could rise while profits from bitcoin mined drop. Probably the best time to mine is in the late stage bear to early stage bull market.

the risks aren't any different from any other time because of the way bitcoin is designed to be like with its difficulty adjustment and the competitive market. the reason why this "company" and many other newbies like them failed and lost a lot of money was because they weren't planning on making profit from "mining"! they were planning on making profit from bitcoin price rise to the moon and they did it because they were newbies who got caught up in the hype of that time. otherwise there are thousands of other miners who have been making profit all around the world because they educated themselves before jumping in.

[dothebeats]

This is what happens when plans are poorly made and are based only on current FOMO that aren't going to last long. Just like Masayoshi Son who bought in 2017, and lost $130 million thinking that the price would continue rising forever. They already have a good business model that delivers profits to their doorstep yet they became greedy just like everyone else with the intention to collect quick profits which, sadly, didn't happen at all. I feel sorry for them, but then again, this is business and people should be ready to lose money.

[Slow death]

I ask myself: what is the purpose of this article? the china is a country that has a very shady regime and things of this type was already expected... now the article seems to me that is saying that mining is not a good business and people should keep away from mining... is this that I realize what the article means. I do not understand about the profitability of mining, so I can not comment about that.