Bitmain renown as the world's largest manufacturer of specialized hardware for cryptocurrency mining
Date
10/11/2023 9:35:22 AM
(MENAFN) Bitmain, renowned as the world's largest manufacturer of specialized hardware for cryptocurrency mining, has reportedly encountered financial difficulties leading to the suspension of salary payments for September and onward, according to reports from Chinese tech media outlet Leiphone. Numerous employees within the company, who are said to be familiar with the situation, shared this development.
Headquartered in Beijing, Bitmain specializes in producing application-specific integrated circuits (ASICs) tailored for the demanding task of cryptocurrency mining. Allegedly, the corporation has implemented measures such as staff reductions and the elimination of various bonuses and incentives. Moreover, salaries owed from the previous month have not yet been disbursed.
An internal communication purportedly from Bitmain conveyed, "For the month of September, the company has yet to achieve a net positive cash flow, especially in the orders of ASICs. The Executive Management Team therefore decided that salaries for the month of September will be paused, to be reviewed after October 7 after the holiday."
Established in 2013, Bitmain has historically held a dominant position in the ASIC production market, garnering an estimated 70 percent market share during peak periods. The company's Antminer ASIC series currently leads the sector in hash rate computations, a critical metric for Bitcoin mining endeavors.
The reported financial challenges faced by Bitmain underscore the complexities and uncertainties within the cryptocurrency industry, a sector known for its volatility. The difficulties faced by such a prominent player in the field also highlight the broader economic implications that can arise within the fast-evolving world of digital currencies and blockchain technology.
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