Employees Face Cuts and Unpaid Remuneration
Bitmain, one of the world's largest Bitcoin mining ASIC manufacturers, has reportedly paused salary payments for its employees. According to local news reports, the firm has halted all bonuses and incentives, while also failing to pay remuneration since last month. Additionally, employees are facing a 50% reduction in their base salary. Bitmain allegedly sent a message stating that salaries for September will be paused until after October 7 due to the company's inability to achieve a positive cash flow.
Bitmain's Dominance in the Bitcoin Mining Industry
Founded in Beijing in 2013, Bitmain holds an estimated 70% market share as a Bitcoin mining ASIC manufacturer. Its Antminer ASIC series is currently leading the industry in terms of hash rate computations for mining Bitcoin.
Recent Developments and Challenges
In August, Bitcoin miner Hive purchased 2,000 Bitmain S19 XP ASIC miners for immediate deployment in its rigs. These miners, priced at $4,653 each, are expected to contribute to Hive's revenue generation. The company predicts that its mining rigs, including both old and non-Bitmain models, will generate a combined $80 per megawatt hour in revenue.
Bitmain has also recently settled a year-long ownership dispute between its co-founders, Jihan Wu and Micree Zhan. According to the settlement, Wu stepped down as chairman and CEO, selling his ownership stake to Zhan for $600 million. Bitmain had previously planned for an initial public offering in late 2022, valuing the company at $5 billion. However, these plans have likely been put on hold due to the ongoing bear market.
Overall, Bitmain's decision to pause employee salary payments and implement salary cuts reflects the challenges faced by the Bitcoin mining industry, particularly amid market fluctuations and competition.
