Cryptocurrency mining equipment manufacturing giant Bitmain seemed to be on an unstoppable spree over the past few years. The company was rapidly expanding and was making profits to the tune of billions of dollars - and had even applied for an ambitious IPO listing in the Hong Kong Stock Exchange. However, over the past year, the cryptocurrency markets crashed - and the effect can now be seen on Bitmain’s expansions. The company will now be shutting down their Amsterdam office, and have reportedly paused their mining operations in Texas.
Despite still being the leading name in the cryptocurrency mining industry, Bitmain has also been affected by the slowdown in the cryptocurrency markets. The company has witnessed a severe slowdown in terms of sales of their cryptocurrency mining devices - as the price of cryptocurrencies crashes.
The general interest in cryptocurrency mining is on a decline, owing to the slowdown in cryptocurrency prices. This has had an impact on a large number of cryptocurrency firms in the past - including the likes of Japan’s DMM Group and GMO Internet. Earlier today, Bitcoin mining company Giga Watt also announced shutdown amid unpaid electric bills and bankruptcy hearings. Many miners across the world are now being forced to sell away their mining equipment in scrap, by the kilogram.
Bitmain too, is feeling the pang of this slowdown. The company is going through a tough time - particularly after the news broke that their IPO request is likely to be rejected as the advisory committee for the Hong Kong Stock Exchange (HKEX) believes that the markets are not yet ready for crypto-related stocks. As a result of this slowdown, Bitmain has decided to shut down its Amsterdam office, which comes just weeks after the shutdown of the Israel office. Bitmain will also be laying off 50% of their workforce in their main office in China. A Bitmain spokesperson commented on this, saying:
“As we build a long-term, sustainable and scalable business, we are making adjustments to our staff and operations. This includes the decision to close our Amsterdam and Israel offices. We are really focusing on things that are core to our mission and not things that are auxiliary. We will continue to hire the best talent from a diverse range of backgrounds.”
Close to 20 people were affected when Bitmain shut down its office in Israel. While there is no word on how many people are currently employed by Bitmain in Amsterdam, at least nine profiles appear on LinkedIn to be working in Bitmain’s Amsterdam office.
Furthermore, Bitmain has also reportedly paused their mining operations in their Texas facility. This news broke via the Texas Public Radio. In 2018, Bitmain had announced that they will eventually invest $500 Million at this facility in Milam County, Texas and create 400 jobs in the area. While Millions of dollars were invested, almost 15 people were employed at this facility, and the staff has now been downsized to just 5.
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