They're trying to get the largest market share, and as stated their costs are bellow $400. By selling they're raising capital to expand, as long as it's above their costs they're at profit (and get the benefit of squeezing other guys out). It's a win/win sell at (some) profit and guarantee more profit. They're not wall street to play the risk game. Even if they were true believers VCs would force them to sell.
They don't necessarily have to sell to raise capital. As previously stated, all of these major companies have millions from selling mining gears.
They're not wall street to play the risk game. Even if they were true believers VCs would force them to sell.
I'm sorry but this is not true. BitFury, probably the biggest venture backed mining company is not selling ANY of the coins they mine.
That's basic business. The bitcoins the ASICs manufacturers are sitting on is considered it's inventory. Company needs liquid cash to pay employees, taxes, cover their costs, and reinvest the remainder into expanding their business model. That would be EXTREMELY risky/suicidal for the CEO of a BIG ASIC company to try and raise more cash from the VCs (at i'm sure very unfavorable terms) instead of a logical thing, like selling your own inventory at profit. That's just not how businesses works. Sure small guys/solo miners in basement can risk it all, be visionaries and hodl until they make it big or run out of money, but not the big guys. Big guys need stability and to minimize their risks, and stick to their business model. What most likely is happening here is BTC are sold to VCs at a certain locked in rate and VCs are holding the burden of BTCs and the price fluctuation (after all risk management is what they do) and ASIC manufacturer can concentrate on their own business model.
VCs are not there to be nice. And because of their terms should be the last choice when raising capital, after your own capital, then loans from banks, then your last stop is VCs. They're not nice guys who give out free money, more like making a deal with the devil.
Also notion that they're so profitable that they don't need any more money is flawed too. If you're sitting on lots of money do you
A-use that to expand your business model. Build not one but 10 mega farms and go after the 20%, 30% of the pie.
Again the bigger they are, and the more control you gave up to VCs the less likely you can do C even if you wanted to