Bitmain Halts Employee Salaries Amid Financial Struggles; Hive Acquires 2,000 Bitmain ASIC Miners
Summary:
Bitmain, a prominent Bitcoin ASIC manufacturer, has temporarily ceased employee salary payments from September onwards due to inadequate net positive cash flow. The Beijing-based company, known for its global market share for ASICs, has also reportedly withdrawn staff bonuses and incentives, and imposed a 50% base pay reduction. In other developments, Bitcoin miner Hive has bought 2,000 Bitmain S19 XP ASIC miners, and despite Bitmain's IPO plans at a $5 billion valuation, these have possibly been stalled due to a bearish market.
Bitmain, a leading manufacturer of Bitcoin application-specific integrated circuit (ASIC), has elected to halt salary payments for its employees from September onwards. As per local news sources, citing insiders at the company, Bitmain has seemingly withdrawn staff "bonuses and incentives" and is yet to make good on salaries due from the previous month. Furthermore, a drastic 50% reduction to their base pay has been imposed on the employees. A purported communication from Bitmain states: “As of September, the company has not managed to achieve a net positive cash flow, particularly concerning the demand for [new] ASICs. Therefore, the decision was made by the Executive Management Team to withhold September's salary payments, with a review scheduled for after the holiday on October 7."
Bitmain, established in Beijing China in 2013, is amongst the global giants in the Bitcoin mining ASIC manufacturing landscape, acquiring up to 70% market share at its zenith. Presently, the firm's Antminer ASIC series is the front runner in the industry with regards to hash rate calculations for mining Bitcoin.
In recent developments this August, Hive, a Bitcoin miner, revealed its acquisition of 2,000 Bitmain S19 XP ASIC miners to integrate into its systems immediately. These S19XP ASIC miners have a price tag of $4,653 as per Bitmain. Hive predicts that, post integration, the company's mining rigs will yield combined revenues amounting to $80 per megawatt hour, incorporating both older and non-Bitmain models.
Last year, Jihan Wu, co-creator of Bitmain, made public a resolution to a long-standing dispute over ownership with Micree Zhan, fellow co-founder. The settlement stipulated that Wu would step down from his roles as Chairman and CEO of Bitmain, and would pass on his stake in ownership to Zhan for $600 million. Concurrently, Bitmain had visions of launching an initial public offering, valuing the company at $5 billion, by the closing of 2022. However, these plans have likely been put on hold owing to the continuing bear market.
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Published At
10/9/2023 4:28:15 PM
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