Leaking industry secrets leads to layoffs at Bitcoin mining equipment manufacturer

Bitmain, the largest manufacturer of Bitcoin mining equipment, was recently accused of suspending salary payments to its employees. The accusations were based on a leaked document, which showed that the company had negative cash flow.

As punishment, Bitmain decided to fire four employees who allegedly leaked the texts. The layoffs affect two people from the research and development department, as well as two other interns.

According to the note, making the data public would have been a violation of the company’s regulations and would have had a negative impact on the company.

Bitmain fires four employees who leaked information about deferred salaries

The leaked information revealed that Bitmain had not only suspended the salaries of its employees, but also failed to pay the year-end bonus for 2022 due to cash flow issues. After the texts were circulated in the media, the mining giant confirmed that it had paid off its debts to its employees.

However, in a recent statement, the company announced the layoff of four employees. According to the allegations, they had violated the company’s terms and conditions. The note suggests they should never be hired.

“Bitmain announced the dismissal of four employees who leaked the contents of the above announcement due to the “illegal publication of the company’s salary release announcement.”

“In early October, the following employees violated company rules regarding distribution on online platforms”points to the letter from Bitmain. “The salary information has had a serious negative impact on the company.”

“You can’t say anything without permission from the company.”

Letter from Bitmain about dismissal of four employees.  Source: Reproduction.
Letter from Bitmain about dismissal of four employees. Source: Reproduction.

According to 2019 data, Bitmain was responsible for around 50% of the ASIC market, but was already losing space to other manufacturers such as MicroBT and Canaan.

Bitmain's dominance over Bitcoin mining ASICs.  Source: Bitcoin.com.
Bitmain’s dominance over Bitcoin mining ASICs. Source: Bitcoin.com.

Located in China, sales may have fallen after the government permanently banned cryptocurrencies in 2021. With the interest of other giants such as Intel in the sector, it is possible that Bitmain’s dominance will be even lower in 2023, which would explain the decline in sales. his profit.

Finally, mining remains one of the most important industries in the cryptocurrency sector, alongside brokers. Competition is fierce, however, as only 6.25 Bitcoins are currently being released per block, a number that dropped to 3.125 BTC in mid-April with the arrival of the halving.

Source: Live Coins