Bitmain

Bitmain is a privately held company headquartered in, Beijing China that develops specialized integrated circuit chips for mining. bitcoins

History

2023: Non-payment of salaries to employees

In early October 2023, it became known that the Chinese company Bitmain, the world's largest manufacturer of cryptocurrency mining equipment, stopped paying salaries to employees due to financial difficulties. Employees have not received the salary due to them since September 2023.

Bitmain, founded Beijing in 2013, supplies special purpose integrated circuits (ASICs) for mining bitcoins other crypto assets. The share of Bitmain products in the corresponding market segment at its peak reached 70%. The ASIC Bitmain Antminer family, as of the beginning of October 2023, leads the industry in hashrate in bitcoin mining.

Bitmain stopped paying salaries to employees

Despite this, the company failed to achieve net positive cash flow in September 2023, particularly in terms of orders for new ASICs. In this regard, the payment of salaries to employees was suspended. Bitmain has cancelled all "bonuses and incentives" for its employees, it says. Moreover, workers face a 50% reduction in basic wages. When it is planned to resume salary payments, nothing is reported.

It is noted that Bitmain failed to maintain a stable financial situation even against the background of the conclusion in August 2023 of a deal to supply 2 thousand. The company's ASIC miners Antminer S19 XP. Hive The cost of each such miner at the time of the purchase was $4653. Thus, the total cost of equipment exceeds $9.3 million. And in April 2023, CleanSpark acquired 45 thousand Antminer S19 XP mining farms in the amount of approximately $145 million: the systems are used to mine bitcoins. However, in the same month Bitmain was fined $3.6 million for alleged tax violations in. China^[1]

2022: Founder of mining equipment maker Bitmain buys $28.4 million bunker to store treasure

On September 21, 2022, it became known that the Jihan Wu founder of Bitmain, a company producing equipment for, mining acquired Le Freeport storage for $28.4 million. The actual buyer was his company. More. here

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