Bitmain Allegedly Pauses Salary Payments for Employees
Bitcoin ASIC manufacturer Bitmain has reportedly halted salary payments for its employees starting from September. According to reports, the company has also cut bonuses and incentives for its staff and has not paid remuneration since last month. In addition, employees are facing a 50% reduction in their base salary. Bitmain cited a lack of positive cash flow, particularly in new ASIC orders, as the reason for the salary pause. The company plans to review the situation after October 7.
About Bitmain and Its Dominance in the Bitcoin Mining Industry
Founded in Beijing in 2013, Bitmain is a leading manufacturer of Bitcoin mining ASICs. It held an estimated 70% market share at its peak. The firm’s Antminer ASIC series is known for its high hash rate computations used in Bitcoin mining.
Hive’s Recent Purchase of Bitmain S19 XP ASIC Miners
In August, Bitcoin miner Hive announced the acquisition of 2,000 Bitmain S19 XP ASIC miners. These miners will be deployed immediately in Hive’s mining rigs. The listed price for each S19XP ASIC miner on Bitmain is $4,653. Hive expects its integrated mining rigs, which include old and non-Bitmain models, to generate a combined revenue of $80 per megawatt hour.
Ownership Dispute Settlement and IPO Plans
In 2021, co-founder Jihan Wu settled a year-long ownership dispute with co-founder Micree Zhan. As part of the agreement, Wu stepped down as chairman and CEO of Bitmain and sold his ownership stake to Zhan for $600 million. The company had previously planned an initial public offering at a $5 billion valuation by late 2022, but these plans are believed to have been put on hold due to the current bear market.
Hot Take: Bitmain Faces Financial Challenges Amidst Market Volatility
Bitmain’s decision to pause salary payments and reduce incentives for employees reflects the financial challenges faced by the company. The lack of positive cash flow and a decline in new ASIC orders have contributed to this situation. As the Bitcoin mining industry continues to navigate market volatility, companies like Bitmain must adapt their strategies to ensure long-term sustainability and success.
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