Chinese Bitcoin mining startup becomes sixth-largest just days after launch, pockets $3 million

A new Chinese startup focused on Bitcoin mining broke into the top-ten hash power providers last week, a local industry observer tweeted on May 13.

The surge

Reportedly launched two weeks ago, Lubian.com is now ranked sixth among all miners as per data on BTC.com. The firm accounts for 5.99 percent of Bitcoin hash powers at the time of writing and provides a steady hashrate of over 7 EH/s.

Spot: Brand new China's mining pool Lubian has mined 5.67% #BTC blocks in the past week, the first block they mined was 627,441 on April 24, 2020. #btcmining pic.twitter.com/4pqPmQ72S0

— BlockBeats (@BlockBeatsChina) May 12, 2020

The pool has surged ahead of other exchange-owned miners, such as Huobi, OKEx, and Binance, all generating significantly less output than Lubian.

As data shows, Lubian mined 27 blocks since last weekend, collecting over 337.5 Bitcoin in rewards (pre- and post- halving) and generating anything between $2.8 million to $3.2 million at current Bitcoin prices.

Lubian has a long way to go before catching up with the top-three miners. In the month from April 13, F2Pool and Poolin, the top-two, boast 20 percent and 16 percent in hash rate share.

Together, the two firms mined 827 and 749 blocks, and have earned a mammoth $87 million and $80 million respectively. Since the start of 2020, the block rewards ballon to a combined 5,000 Bitcoin, meaning hundreds of millions of dollars in sales.

While few details of the startup exist online, it’s homepage touts faster settlement times, globally positioned nodes, and “uninterrupted” service for customers. “Original” mining architecture, security against hash rate attacks, and a “leading” mining algorithm are listed as some other features.

CryptoSlate couldn’t independently verify these claims, but considering Lubian’s prominent rise, its customers must be a happy bunch.

China’s burgeoning mining industry

Lubian is a result of the strong mining industry in China. Reports suggest the country’s Western region provides hydropower-based cheap electricity, affordable and technical competent labor, and year-round cool weather, all factors that benefit Bitcoin mining firms.

China’s dominance in the Bitcoin mining space is no secret. Studies estimate over 70 percent of the protocol’s hash power originates in the Far East, with firms like Bitmain-owned Antpool and F2Pool generating in millions in profits each quarter. The financial results are a testament to the country’s technical prowess and abundance of resources pertinent to Bitcoin mining.

While China remains hush on acknowledging its mining industry, the rise of players like Lubian mean its dominance in the Bitcoin mining space is not one that will die out soon.

Meanwhile, China is gearing for the launch its state-backed digital currency. As we reported in April 2020, the so-called “Digital Yuan” is undergoing pilot trials in the local franchises of American fast food brands McDonalds and KFC. No dates for a launch exist yet, but the project signifies a major progress in the world’s financial and economic systems.

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