According to recent local news, Bitmain has stopped paying salaries to its employees for September and beyond. The company has cut all "bonuses and incentives" for staff and still hasn't paid wages due since last month. They also took a 50% cut in employees' salaries. A message from Bitmain says:
"In September the company failed to achieve net positive cash flow, particularly on orders of [new] ASICs. The Board decided to withhold salaries for September and review them after October 7, following the holiday."
Founded in Beijing, China, in 2013, Bitmain is one of the world's largest Bitcoin mining ASIC manufacturers, with an estimated 70% market share at its peak. The company's Antminer ASIC series leads the industry in hash rate calculations for Bitcoin mining.
In August, Bitcoin miner Hive announced that it had purchased 2,000 Bitmain S19 XP ASIC miners for rapid deployment at its own mining facilities. The listed price of S19XP ASIC miners on Bitmain is $4,653. Following the integrations, Hive said the company's mining facilities will generate combined revenue of $80 per hour, including legacy and non-Bitmain models.
In 2021, Bitmain co-founder Jihan Wu announced the resolution of a year-long ownership dispute with co-founder Micree Zhan. Under the agreement, Wu would step down as chairman and CEO of Bitmain and sell his ownership interest to Zhan for $600 million. At that time, Bitmain was planning to go public at the end of 2022 at a valuation of $5 billion. However, such plans are believed to have been shelved due to the ongoing bear market.
What do you think Bitmain's suspension of salary payments and cuts in employees' salaries means for the future of the company? We are waiting your comments.
"In September the company failed to achieve net positive cash flow, particularly on orders of [new] ASICs. The Board decided to withhold salaries for September and review them after October 7, following the holiday."
Founded in Beijing, China, in 2013, Bitmain is one of the world's largest Bitcoin mining ASIC manufacturers, with an estimated 70% market share at its peak. The company's Antminer ASIC series leads the industry in hash rate calculations for Bitcoin mining.
In August, Bitcoin miner Hive announced that it had purchased 2,000 Bitmain S19 XP ASIC miners for rapid deployment at its own mining facilities. The listed price of S19XP ASIC miners on Bitmain is $4,653. Following the integrations, Hive said the company's mining facilities will generate combined revenue of $80 per hour, including legacy and non-Bitmain models.
In 2021, Bitmain co-founder Jihan Wu announced the resolution of a year-long ownership dispute with co-founder Micree Zhan. Under the agreement, Wu would step down as chairman and CEO of Bitmain and sell his ownership interest to Zhan for $600 million. At that time, Bitmain was planning to go public at the end of 2022 at a valuation of $5 billion. However, such plans are believed to have been shelved due to the ongoing bear market.
What do you think Bitmain's suspension of salary payments and cuts in employees' salaries means for the future of the company? We are waiting your comments.