Bitcoin application specific integrated circuit (ASIC) manufacturer Bitmain has temporarily halted employee salary payments for September and beyond.
According to the latest local news ReportsCiting several Bitmain employees familiar with the matter, the company has allegedly reduced all “bonuses and incentives” for its employees and still has not paid the bonuses owed since last month. In addition, employees face a 50% deduction from their basic salaries. The text of the alleged message from Bitmain is:
“For September, the company is yet to achieve positive net cash flow, especially in orders [new] ASIC. Therefore, the executive management team decided to temporarily suspend September salaries, to be reviewed after October 7, after the holiday.
Founded in Beijing, China in 2013, Bitmain is one of the largest manufacturers of ASIC chips for Bitcoin (BTC) mining in the world, with an estimated 70% market share during its peak. The company’s Antminer ASIC series currently leads the industry in terms of Bitcoin mining hash rate calculations.
In August, Bitcoin mining company Hive Announce Purchased 2,000 Bitmain S19 XP ASIC miners for immediate deployment on their platforms. The S19XP ASIC miner has a listed price of $4,653 on Bitmain. Hive said that after the integrations, the company’s mining rigs will generate combined revenue of $80 per megawatt hour, including legacy and non-Bitmain models.
In 2021, Jihan Wu, co-founder of Bitmain, Announce Settled a year-long ownership dispute with co-founder Micree Zhan. Under the agreement, Wu will resign as Chairman and CEO of Bitmain and sell his ownership stake to Zhan for $600 million. At the time, Bitmain planned a $5 billion IPO by late 2022. Such plans are believed to have been postponed due to the ongoing bear market.
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