Meixin Technology Responds to Bitcoin Price Surge: Transformer Orders Driven by Client Demand

Meixin Technology Responds to Bitcoin Price Surge: Transformer Orders Driven by Client DemandMeixin Technology (301577.SZ) recently responded to investor inquiries regarding the recent surge in Bitcoin's price and its impact on the company's order volume

Meixin Technology Responds to Bitcoin Price Surge: Transformer Orders Driven by Client Demand

Meixin Technology (301577.SZ) recently responded to investor inquiries regarding the recent surge in Bitcoin's price and its impact on the company's order volume. An investor on an investor interaction platform noted Bitcoin's recent record highs, reaching $94,000 per coin, and asked if Bitmain, a major Bitcoin mining equipment manufacturer, had increased its orders to Meixin Technology as a result.

In its November 22nd response, Meixin Technology clarified that it primarily supplies power supply transformers for Bitmain's mining equipment. However, the company emphasized that Bitcoin price fluctuations are not directly correlated with its performance. Production schedules are determined solely based on actual order demand from Bitmain. This means that even if a Bitcoin price surge leads to increased demand for Bitmain's mining machines, an increase in orders for Meixin Technology is not guaranteed. The final decision-making power regarding order volume rests with Bitmain; Meixin Technology merely produces according to Bitmain's specific needs.

This response highlights Meixin Technology's robust operational strategy in the face of market volatility. The company avoids directly tying its performance to the cryptocurrency market, focusing instead on its core business of providing high-quality power supply transformers to its clients. This strategy helps the company maintain stable growth amidst market uncertainty, preventing significant performance fluctuations due to external factors.

Investor concern regarding the impact of Bitcoin's price on Meixin Technology stems from Bitmain's position as a leading global Bitcoin mining equipment manufacturer. Bitcoin price increases typically stimulate demand for mining equipment, consequently boosting the prosperity of related industries. However, Meixin Technology's response indicates that the company doesn't directly benefit from Bitcoin price swings. Its business growth relies more on Bitmain's overall mining equipment production plans and the overall market demand for mining equipment, rather than short-term Bitcoin price fluctuations.

Meixin Technology's response also demonstrates transparency in its information disclosure. The company directly and clearly answered investor questions, avoiding ambiguous explanations, thus fostering investor confidence. In a complex market environment, this honest and transparent communication is crucial for maintaining investor relations.

In summary, Meixin Technology's response clearly explains that its relationship with the Bitcoin market is not a direct causal one, but rather an indirect one, reflected through Bitmain's order demand. The company will continue to focus on its core business and adjust its production plan according to market demand to ensure long-term stable development. Investors should rationally assess the impact of Bitcoin price volatility on Meixin Technology and avoid blind investment follow-up.

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