Behind TSMC's monthly income of 10 billion yuan, there are mysterious rich people hiding

2022-03-14 11:39

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Zhao Changpeng, the founder of Binance, a cryptocurrency trading platform, became the richest Chinese with a fortune of $90 billion. The Chinese-Canadian denied the news on Twitter, saying that valuations without liquidity are meaningless. Binance has expanded rapidly in recent years to become the world's largest cryptocurrency exchange platform, while bitmain, another giant, established the influence of Chinese in the blockchain field as early as 2017. Different from Binance, Bitmain is the top chip research and development company in China. In addition to being highly influential in the blockchain industry, bitmain also stands on the high ground of chip technology, taking 80% of the global mining machine market share.

Most importantly, The founder of Bitmain, Zhan Ketuan, is a Chinese national.

Behind the low-key is solid strength

As early as 2018 hurun Rich List, Zhan Ketuan has become "China's richest blockchain".

Jenktuan is so low-key that he would not have surfaced if it had not been for the Hurun Rich List. Instead of being low-key, he's super powerful. Zhan Ketuan graduated from Tsinghua University and Chinese Academy of Sciences, and once served as a RESEARCH and development engineer of Tsinghua University Information Technology Research Institute, with profound technical skills.

In 2013, Jihan Wu found Jihan Zhan to join the group, zhan Zhan only spent two hours to read the data of bitcoin, and then immediately decided to co-founded Bitmainland with Jihan Wu, the development of ASIC chip can efficiently run bitcoin encryption algorithm. In addition, The jencke team agreed to a partnership in which they would receive shares in the company for each chip they developed without being paid.

In only half a year, Bitmain developed its own 55nm bitcoin mining chip BM1380 and the first generation of AntMiner S1 based on BM1380 chip. Later, bitmain technology team constantly updated cutting-edge products, ant Mining machine from S1 to the latest S19, chip from 55nm to the current technical limit of 5nm, ant mining machine market share once exceeded 90%, zhan Ketuan as the leader of the technical team contributed greatly.

Bitmain's valuation has also climbed under Jenker's leadership. Back in 2018, when Bitcoin was valued at $10,000, bitmain was valued at $15 billion. In 2021, bitcoin peaked at $60,000 a coin, a more than four-fold increase in price, and bitcoin land is conservatively estimated to reach $60 billion.

With confidence in his technology and good judgment, Jenktuan took on more and more shares, eventually becoming bitmain's largest shareholder, and those who know his history admire his courage and strength.

In January 2021, Janktuan bought jihan Wu and a minority stake in Bitsource for $600 million, solidifying the management of BitMain. The acquisition was financed with a $400 million loan from Bitmain and $200 million from outside financing.

It is reported that the investors who provide fund support for Zhan Ketuan's acquisition mostly come from fujian's hometown. The listing of Bitmain was delayed due to regulatory factors. With gratitude and the integrity of Fujian Business, Zhan ketuan bought back shares at a valuation of $20 billion, making investors five times more profitable in a few months. While others admire these investors' short-term windfall profits, I believe that the more patient investors will reap even more spectacular returns as Bitcontinental grows.

This equity reorganization, sequoia capital, new day domain capital and other heavyweight investors is also the biggest winner. They originally invested in Bitmain with a high valuation of $15 billion in 2018. In this equity restructuring, they obtained valuation adjustment compensation, and their shareholding proportion in the company increased by 4 times, and the investment cost decreased geometrically. It is reported that Sequoia capital about 700 million DOLLARS of investment, the return has been as high as 2 ~ 3 billion dollars.

Now, as BitMain's largest shareholder, Jenktuan has led the company to further consolidate its market position and lead the competition in chip manufacturing process design.

Super market share and annual revenue of 10 billion dollars

Compared with the top three manufacturers in the mining machine industry, Bitbit Mainland's market share is surprisingly high. Since 2015, bitBit has maintained the first place in the global market share. In 2017, the sales volume accounted for 90% of global mining machine sales, completely crushing the peer. Bitmain not only has such a high market share, but also has extremely high gross and net margins. Back in 2017, Bitmain had gross margins of about 60% and net income of more than $1.1 billion.

In addition to running the business, Zhan Ketuan refined buddhist practice, familiar with the Yellow Emperor's Internal Canon, often continued to drink grain for dozens of days, do not eat. His personal wealth seemed to have faded to him. At the same time, Janke tuan has become a super taxpayer in Beijing and Haidian district by virtue of his strength.

In 2021, bitmain is hit by a large number of orders. In April 2021 alone, Core Scientific, an established US mining giant, and Bitmain completed orders for 112,800 mining machines, totaling 188,824 units. Bitmain's total revenue could exceed $400 million. This is just one example of bitmain's runaway performance. Bitmain's total sales are expected to reach $10bn in 2021, according to market estimates.

In 2022, Janke set a target of doubling the sales volume for Bitmain. It seems to be a KPI for sales, but actually it is to test the delivery capacity of Bitmain's factories, because their products have no shortage of sales, and miners all over the world are snapping up Bitmain's products. Bitmain has close to $10 billion in cash reserves, according to insiders. The author estimates that in 2021-2022, Bitmain can achieve a total net profit of about $20 billion, and generate as much as $4-6 billion in tax revenue for the country.

Advanced core technologies carry China's chip dream

The creation of wealth is inseparable from the development of core technology, chip research and development has been one of the core competitiveness of Bitmain.

As a leading computing chip company in the world, Bitmain has the world's advanced 5nm process design capability and has been committed to the research and development of more advanced process chips. Its products mainly focus on blockchain and artificial intelligence.

The main application of blockchain industry is mining machine. Since the first generation of Bitmain mining machine Ant S1, Bitmain has designed a special ASIC chip that can crush other miners in computing power for bitcoin computing, and has continuously developed and introduced ASIC chip mining machine with higher computing power and lower energy consumption.

Bitmain released S19j and S19jPro2 models in 2020, using the world's best 5nm process. The process is already in mass production, and in May 2021 TSMC won an order from Bitmain to manufacture chips for cryptocurrency mining using the 5nm process. In addition, Bitmain's upcoming new Bitcoin mining machine S19XP is also based on the 5nm chip design.

Since 2013, in addition to S series mining machines for Bitcoin, Bitmain has also developed L series mining machines for Litecoin, E series mining machines for Ethereum and B series mining machines for the original chain.

Mainland in the field of artificial intelligence, the bit is a few in the world have the ability to develop the cloud, one of the artificial intelligence chip has been successfully launched four artificial intelligence chip BM1680 BM1682 / BM1880 / BM1684 and series products of artificial intelligence, calculation module contains AI, accelerator card, AI AI to calculate the box, etc. At present, Bitmain AI chips and series of products have played an important role in urban brain construction around the country, and are widely used in artificial intelligence scenes such as face recognition, video structure, urban brain, intelligent government affairs, intelligent security, intelligent transportation, intelligent power energy, new retail and so on.

The road of bitmain's chip did not stop there. With the continuous expansion of the company's scale and influence, more and more chip experts joined BitMain, making bitmain's research and development capabilities to a higher level. Wang Yanfeng, a chip expert who used to work in Nvidia, even gave up a large number of nvidia shares to bring the technology and resources he accumulated in Nvidia back to The mainland, helping Bitmajor to break through technical barriers and becoming the backbone of bitmajor's chip research and development. Even TSMC experts are full of praise for him.

Bitmain is also on the way to developing 3nm chips, even 2nm and 1nm chips are on the agenda. As the cornerstone of the national economy, Bitmain will focus on computing chips for a long time, and strive to become the most advanced computing chip company in the world, and continue to contribute to China's IC industry.

Half of TSMC's ten billion yuan performance

At a time when the global market is short of chips and demand exceeds supply, TSMC has a lot of business to do. Behind all this, can not leave the power of bitland. As early as the second half of 2017, Bitmajor has become the second largest customer of TSMC in China, and has been included in TSMC's key customer list, receiving a large number of orders from Bitmajor every year.

Recently, TSMC announced its fourth-quarter and full-year 2021 results, showing that TSMC recorded a record quarterly revenue of us $15.74 billion in the fourth quarter of 2021, up 21.2% year on year. This is TSMC's sixth consecutive quarter of record revenue growth.

Mainland after according to media reports, the bit in the second half of 2021, TSMC is to place an order of 50000 pieces, about 600000 new mine machine, just a single, will bring profit of $1.2 billion for mainland bits, the media, said TSMC has to take seriously, even with TSMC executive to Japan, the key equipment for purchase of this order.

Mature management employees have high happiness

With the soaring performance of Bitmain synchronous development of bitmain's management mechanism. Bitmain's management mechanism is flat and orderly, and the working atmosphere is equal and relaxed, open and inclusive.

Under the leadership of Janke Tuan, Bitmain has learned from Huawei's corporate management culture, which has enabled the company to rapidly grow into a highly efficient enterprise. In addition, Bitmain also adopts market-leading compensation strategy and provides comprehensive and warm welfare and security plan for its employees. Employees can not only get 50% higher than the market average salary treatment, but also various aspects of welfare and subsidies. To reduce commuting time, bitmain offers housing subsidies and a dedicated office floor in the building where breakfast is served.

In such an environment, employees have a high sense of happiness, can grow rapidly, and get the growth of professional ability and technical level. This has helped Bitmain gain more favor from job seekers in the talent market and reserve a large number of talents. Bitmain carries out campus recruitment every year to help the country solve the employment problem of college students, and also provides the company with an endless supply of reserve talents. Many companies have copied Huawei's management model, but only Mr Zhan, arguably the most successful of Mr Ren's many disciples, has learnt the lessons.

A $100 billion ipo is no longer a distant prospect

Everything is ready except for the ipo. As an entrepreneur with a dream, Janke tuan's wealth has been unable to measure its own value. Although bitmain failed to go public in 2018, Jenktuan has not given up his plan to go public.

January 25, 2022 bitMain invests in cryptocurrency mining service BitFuFu and publicly traded special purpose Acquisition company Arisz Acquisition (NASDAQ: ARIZ (" SPAC ") announced that it has entered into a definitive business combination agreement that will enable BitFuFu to become a Nasdaq-listed company under the ticker symbol "FUFU" in a transaction that values the company at an enterprise value of approximately $1.5 billion. That includes a $70 million investment led by Bitmain and Antpool Technologies. Bitmain is in talks with Deutsche Bank and KPMG to go public. Its financial data are highly confidential and it is expected to complete the listing plan within two to three years, according to sources familiar with the matter.

Many financial experts expect bitcoin to reach $500,000 in the near future, making it reasonable for bitcoin to be valued at $500 billion. For zhan Ketuan, the actual controller of Bitmain, personal wealth is another explosive growth. Experts have boldly predicted that bitcoin could rise to $1 million, which would put Jenktuan's personal net worth at more than $430 billion, surpassing Musk as the richest person in the world, perhaps not impossible.

As an outstanding national entrepreneur, personal wealth is no longer so important to Jenktuan. It is more important for him to make breakthroughs in chip research and development technology of Bitmain and realize his ideal of serving the country through science and technology. The company's market value will first break 100 billion yuan and then one trillion yuan, and investors and employees will get returns.