Recently there have been numerous rumors saying that Bitmain is about to lay-off almost 50-85% of their staff, because of the crypto market downfall issues. Bitmain is a mining equipment company which has suffered a massive drop in the interest of their mining business as a whole.
Rumors out of a Chinese LinkedIn with very “high accuracy”
All these rumors are backed by a mysterious Chinese-like LinkedIn called Maimai, where some of Bitmain’s employees have created a long thread about a significant layoff planned by Bitmain. In the thread, they were discussing the possible salaries and bonuses they would get. Some comments speculate on the number of job positions being let off, but all-in-all, it’s just a social media site.
These could be just pissed-off employees spreading lies about the company.
An official who wants to stay anonymous
Later, the South China Morning Post stated that both, Huobi and Bitmain, has confirmed the layoffs, but the Bitmain official wanted to stay anonymous because this news still hasn’t been revealed to the public. He denied that Bitmain was about to lay off 50% of their staff, but also didn’t specify anything in particular.
Bitmain closes Israel development arm
Earlier this month, Bitmain laid off all their 23 employees in their Israel department. This department was mainly for research purposes. Only a few months earlier, they were about to hire 40 new researchers. The branch leader, vice president of Bitmain, who also got laid off, stated: “The crypto market has undergone a shake-up in the past few months, which has forced Bitmain to examine its various activities around the globe and to refocus its business in accordance with the current situation.”
Has Bitcoin Cash anything to do with this?
It was previously reported that Bitmain sold almost all their Bitcoin for Bitcoin Cash. Also, Bitmain is one of the, if not the biggest, supporter of Bitcoin Cash with Jihan Wu in the front. Believably, Bitmain holds somewhere from 664,000 – 1,33 million BCH coins. Earlier this year, during March, Bitmain had about 22k BTC, but during December 2016, they had about 71k BTC. That indicates that they are either covering their expenses with BTC or selling it for BCH. Who knows how much they have left.
Revenue, profits, and IPO.
These are abnormal figures we’re talking about. For more, last year they recorded a stunning $2 billion in revenue, with $1,22 billion of it being profit. And this is only counting their primary business – mining equipment. God only knows how much other coins have they mined and stored. However, they decided to do an official IPO and managed to raise $400 million with an objective to raise $1 billion before beginning their efforts in securing their IPO. In September they filed for officially going public. That poses a simple question – why do you need more money, when you have almost all of it?
Bitcoin Cash or Bitmain
It looks like Jihan Wu is in an unbearable situation. Mining business is falling, and so is Bitcoin Cash‘s price. Jihan is entirely behind BCH in this recent hash war with Bitcoin SV. Much like dumping his employees, after a while and a few billion, he could stop supporting BCH as well. That would mean a complete loss of hash rate, and possibly the end of this cryptocurrency.
Also, there were rumors from Samson Mow that Bitmain is shutting down their Bitcoin Cash development team Copernicus which was responsible for the Bitcoin Cash GO client.
This bear market is severely damaging the crypto ecosystem, as most of the companies which felt stable last year, or at the beginning of this year, now feel endangered and clueless about their future. Though one thing is not clear – how can you earn so much money (Bitmain) and still ask for more? People are still waiting for Bitmain’s next revenue reports.