Kodak, the 130 year old American Icon, now builds mining machines

Iconic Kodak presents its Kashminer mining machine to directly compete with the popular Bitmain Antminer.

Kodak stock has been on a tear since the changed their business model. For over a century, they have been the staple of photo taking innovation… and with the arrival of the digital age, Kodak’s value and profitability came into question, a concern for many investors who have sold the stock.  Its no secret that nobody really buys a Kodak camera anymore, with Samsung and iPhone building far superior cameras in the mobile phones, it seems like a lost cause for Kodak to even consider competing the the $600 billion behemoth Apple, or with any other camera developers such as GoPro for that matter.

Then, suddenly… a pivot.  Who would have ever guessed?  Not the short sellers who probably lost millions on their puts and had to buy to cover their positions.  Kodak suddenly announces it will build mining machines.  Genius.  The pivot of the century.

But, they have a real viable competitor in this space.  Although not a household name such as Kodak, or Nvidia, Bitmain is know to be the ultimate mining machine in the cryptocurrency mining industry. Bitmain, unlike Kodak, started in building their ASIC machines in 2013 when Bitcoin was not yet so trendy as it is now, and only accepted payment for its mining machines in Bitcoin (now also accepting bitcoin cash).  During these early days the price of their flagship “Antminer” machine was in the hundreds of dollars, reaching a peak last year of nearly $5,000.  Many think this nearly 70% market dominance is dangerous, discouraging other competitors from entering the market.

Enter Kodak.  Their “Kashminer” machine program works like this:  For $3400, you can “rent” the machine for 2 years, which according to Kodak, should produce an income of approximately $375 worth of Bitcoins per month.  This translates to a nearly $9000 revenue profit in 2 years, and of course one must calculate the electricity/kilowatts to power it during the rental period.

 

Many miners have warned that this revenue estimate cannot be predicted due to the regular increase in difficult each month.  Based on historical increases, the rate of difficulty increase is about 15% per month, which has not been accounted for in Kodak’s rough estimates.

In any case, Kodak’s pivot into the mining machine industry has been seen by investors as the right move, as indicated by its stock price.  The question remains: will Kodak prove to be a real competitor to the powerhouse of the market Bitmain?  Let us know with your comments below..

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Author Contributor, Mitch Elbiali

Bitcoin and Cryptocurrency enthusiast

 

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