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Bitmain developed an ASIC Ethereum miner, a Wall Street analyst claims

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A Wall Street research firm has reduced price targets for leading Nvidia and AMD chip makers, claiming that she has received confirmation that Bitmain has started producing ASIC Ethereum miners.

According to Susquehanna analyst Christopher Rolland, the company recently confirmed that the British company Bitmain – by far the largest producer of miners using Application Specific Integrated Circuit (ASIC) chips – will only be in a few months' time. ship the first compatible Ethash miners, the Proof – of – Work (PoW) hash algorithm used by Ethereum and a variety of other cryptocurrencies.

Rolland adds that at least three other manufacturers have started developing ASIC Ethereum miners.

"During our trips to Asia last week, we confirmed that Bitmain has already developed an ASIC … for Ethereum operation, and is preparing the logistics chain for expeditions in 2T18 ", writes Rolland in a statement. CNBC report. "While Bitmain is probably the largest ASIC provider (currently 70-80% of Bitcoin mining ASICs) and the first to market this product, we learned that at least three other companies are working on ASICs. Ethereum, all at various stages of development. "

Since ASIC chips are application-specific, they maximize the efficiency of cryptocurrency mining, but are only useful for a few others.

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Up to now, Ethash was resistant to ASICs, which allowed Ethereum and other similar cryptocurrencies to be extracted using General Purpose GPU chips commonly used in computers. of play

As leaders in what is actually a GPU manufacturing duopoly, Nvidia and AMD both greatly benefited from the cryptocurrency price boom of last year, which had a correlative effect on the Mining. In fact, many investors have treated these two companies as "substitute stocks" for the cryptocurrency industry.

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Although the release of an ASIC Ethereum minor does not cause the evaporation of the mine-related GPU application, Monero, for example, has promised to regularly modify its extraction algorithm for maintain resistance to ASICs, which could have a noticeable effect on AMD. income in particular.

In fact, AMD warned in its recently published annual filing that the GPU application could be "seriously affected" if the miners stopped buying.

As a result, Susquehanna reduced its price target for AMD shares to $ 7.50 versus $ 13 and Nvidia shares to $ 200 versus $ 215.

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