Bitmain, one of the world’s largest Bitcoin application-specific integrated circuit (ASIC) manufacturers, has suspended employee salary payments from September, according to a Tuesday report by China-based tech news outlet Leiphone.
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Fast Facts
- The firm has also cut all bonus incentives for its staff, on top of the employee salaries since last month, the news outlet reported citing unnamed Bitmain employees.
- “For the month of September, the company has yet to achieve a net positive cash flow, especially in the orders of [new] ASICs,” Bitman allegedly said in an internal note. Employees reportedly face an additional 50% cut to their base salary.
- Bitmain did not immediately respond to Forkast’s request to comment on this story.
- Crypto mining firms have been pressured by the current crypto bear market. Bitmain cut the price of its S19 Pro mining rig to US$19 per terahash back in September 2022, which is a 41% discount.
- Bitmain was founded in Beijing in 2013 and is one of the world’s largest Bitcoin mining ASIC manufacturers. The firm has numerous subsidiaries in the U.S., Singapore, Malaysia and Kazakhstan.
- Bitmain was fined US$3.6 million for alleged tax violations in China in April.
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