Bitmain Delayed Staff Wages Payment Due to Cashflow Issues
One of the biggest producers of Bitcoin mining hardware, Bitmain, has put a hold on paying salaries to its staff for the month of September and maybe longer due to the decline in cryptocurrency prices.
A 50% base wage cut has been implemented by Bitmain until at least October 7th, according to reports quoting texts delivered to employees. Additionally, bonuses and incentives have been withdrawn.
The message apparently stated that:
Beijing-based Application-specific integrated circuit (ASIC) miners designed specifically for mining Bitcoin were invented by Bitmain, which now dominates the industry. Long leading the industry in mining computer power is its Antminer series.
As a positive sign during the downturn, the North American mining company Hive announced in August that it will buy 2,000 of Bitmain’s brand-new S19 XP Antminer rigs. The profitability of mining has, however, been severely reduced by the crypto market decline through 2022. From $60 million per day in January to under $18 million recently, miners were paid for securing the Bitcoin network.
Sales of mining equipment have been under pressure due to the decreased incentive and expensive energy and infrastructure expenses. Bitmain’s suspension of compensation payments indicates that sales are insufficient to cover labor costs. Major exchanges like Coinbase and Gemini have cut staff in comparable circumstances, while others are in danger of going bankrupt.
in a brighter era Just last year, the founders of Bitmain resolved a disagreement over control, clearing the path for IPO preparations and a potential $5 billion valuation.
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