Samsung is Reportedly Working on Chips for Cryptocurrency Mining

As expected, the company raked in record profits.

The South Korean company said it's ramping up production of computer chips used to mine digital currencies like bitcoin, cashing in on growing demand.

"The stock split signals Samsung will stay on its course bolstering returns to shareholders", said Cho Ik-Jae at Hi Investment and Securities. The stock split will open the door to retail investors as well, boosting liquidity and underpinning valuations, analysts said.

Operating profit came to 15.15 trillion won in the fourth quarter, up 64.3 percent won from a year earlier, Samsung Electronics said, in line with the indication it issued earlier in January. Revenues stood at 240 trillion won ($225 billion/£159 billion).

Samsung shares have soared today after the company revealed healthy Q4 and annual profit figures as well as a 50:1 stock split, the latter of which is created to increase investment.

Shares of Samsung Electronics were up 0.20 percent to 2,495,000 won, outperforming the broader KOSPI's 1.28 percent loss. South Korean tech giant Samsung confirmed that it is now producing chips specially designed for cryptocurrency mining.

Overall, the company reported full-year revenue of KRW 239.58 trillion (roughly 276.7 billion AUD) and full-year operating profit of KRW 53.65 trillion (roughly 62 billion AUD).

Mining is a profitable business, and it's no wonder that Samsung, the world's largest chip maker as of Jan 31, 2018, is looking to enter the space.

"Samsung's foundry business is now engaged in the manufacturing cryptocurrency mining chips".

TSMC said it expected the cryptocurrency market to drive up demand for high-end chips and help it post record revenue this year, outweighing softening sales to smartphone vendors.

Based on preliminary results, Samsung already revealed it targeted a record fourth quarter profit.

"In the first quarter, the company expects the mobile business to improve its earnings, led by an increase in sales of flagship products with the launch of Galaxy S9".

  • Latoya Cobb