Bitcoin Mining Giant Accused of Suspending Salary Payments

Bitmain, a manufacturer of Bitcoin mining equipment, has reportedly suspended payment of its employees’ salaries. According to journalist Colin Wu, the giant stated that its cash flow was negative in September, expressing concerns about its operations.

A screenshot, written in Mandarin, shows an alleged letter sent to company employees asking them to ensure targets are met.

“Notice regarding the suspension of payment of part of the salaries of all employees in September.”

“In September, the company’s operating cash flow did not become positive, the progress of some mining machines is not up to standard”indicates the screenshot. “Decision: temporarily suspend the payment of part of the salaries of all employees in September.”

Alleged letter sent to Bitmain employees.  Source: Colin Wu/Reproduction.
Alleged letter sent to Bitmain employees. Source: Colin Wu/Reproduction.

Hours after the above post circulated on social media, with confirmation of the information by some employees, Bitmain reported that it had paid salaries and reduced only some performance bonuses.

“On the afternoon of October 7, Bitmain paid salaries for September, stating that it only did not pay the performance salaries of some people. The basic salary was normally released on September 30.”

Bitmain launches the most powerful Bitcoin mining ASIC on the market

Despite rumors that the world’s largest manufacturer of Bitcoin mining ASICs is in crisis, data suggests the sector is on the rise. Even without new price increases, the network’s computing power continues to reach new highs every week.

Bitcoin hashrate reaches new record.  Source: Coinwarz.
Bitcoin hashrate reaches new record. Source: Coinwarz.

One of the reasons is the arrival of new ASICs, mainly from Bitmain. According to the company’s official website, the S21 model promises to deliver 200 TH/s, almost four times more than its previous model, the S17.

Each machine weighs more than 15 kg and is sold for $7,000 directly on the company’s website, which plans to begin shipping in batches of 1,000 units in 2024.

S21, Bitmain's new mining platform.  Source: Bitmain/Reproduction.
S21, Bitmain’s new mining platform. Source: Bitmain/Reproduction.

One of the reasons to believe that the S21 model will be in high demand is the arrival of the Bitcoin halving, scheduled for April next year. With mining rewards halving, older equipment is expected to no longer be profitable.

Therefore, large mining companies need to upgrade their farms, with Bitmain being the main supplier. As a result, the network’s computing power should continue to grow despite lower incentives, thus maintaining Bitcoin’s security.

Finally, rumors about the salary pause at Bitmain indicate that the crisis in the sector is not over yet. Since the end of 2021, several companies have already implemented mass layoffs and benefit cuts.

Source: Live Coins

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