Chinese mining and mining Application Specific Integrated Circuit (ASIC) manufacturer Bitmain lost $625 million in the first two months of this year, local media QQ reports on Aug. 2.

Hundreds of millions lost

Per the report, the firm sustained losses of $625 million by March, $345 during January, and $280 million during February. Those results were reportedly driven by the sales of outdated 16 nanometer ASICs at low prices, and once the inventory is cleared of those machines, new profits are expected from the sale of new, 7 nanometer mining rigs.

The gross profit margin of the company is expected to reach 30% in April thanks to sales of the aforementioned device. At the end of March, the firm announced that its 7 nanometer Antminer S17 series miners are expected to launch on April 9.

As Cointelegraph reported in June, Bitmain is revisiting plans for an initial public offering as the cryptocurrency market started reporting gains again. While the company was hoping to raise $3 billion from its planned Hong Kong IPO, the most recent report suggested that this fundraising target will be reduced to between $300 million and $500 million if it lists in the United States.

Earlier this week, unconfirmed reports surfaced that Canaan Creative, a major competitor to Bitmain, had become the first Chinese Mining firm to file for an IPO in the U.S.