Bitmain, a well-known Chinese Bitcoin mining machine manufacturer, made a major announcement, marking its entry into the Filecoin ecosystem.
FIL Token Mining
According to an announcement the company made on social media on Friday, the company will launch FIL token mining machines, each of which is expected to have a computing power of up to 4,300T and will be priced at $38,888 per unit.
Filecoin was created by Protocol Labs and was originally designed as a blockchain-based collaborative digital storage and data exchange solution. As an open source, public cryptocurrency and digital remittance system, Filecoin has received widespread attention from the market.
Entrusted pledge
As mining machines develop, Bitmain has launched a delegated staking service with a monthly fee as low as 0.5%. The service provides traders with the opportunity to earn more income by staking with minimal computing power. Delegated staking allows users to delegate their staking rights to validators or staking pools, allowing them to share the rewards generated by these validators.
According to a recent report from crypto market intelligence firm Messari, Filecoin's data storage market continued to grow in the second quarter of 2023. Active data storage transaction volume increased by 64% from the previous quarter. This transaction flow led to an increase in fee revenue, which increased by 91%. Further development of the Filecoin protocol led to the recent launch of the Filecoin Virtual Machine (FVM). The runtime environment for smart contracts enables new use cases, including liquidity staking, decentralized computing, and permanent storage.
Bitmain's entry into the Filecoin ecosystem not only supports the development of FIL token miners, but also brings hope to FIL token holders who have suffered losses. The price of FIL reached a peak of $190 during the 2021 cryptocurrency bull run. The company's participation has had a positive impact on the price of Filecoin.
Meanwhile, Bitmain remains a major player in the crypto mining equipment space. However, 2021 has not been all bad for the company, as in April the Beijing-based firm was fined $3.7 million for violating Chinese tax regulations.
Bitmain’s computing power dominates
Earlier this month, US Bitcoin miner TeraWulf purchased 18,500 mining machines from Bitmain, aiming to deploy them at its 43 MW Lake Mariner mining farm in New York, USA. The deal was valued at $75 million.
A recent report from crypto intelligence firm Coinmetrics states that the majority of Bitcoin hashrate is being processed by Bitmain’s S19 mining model. The report states that Bitmain’s three mining models account for 76% of the entire Bitcoin network’s hashrate.