Bitmain, one of the world’s largest makers of Bitcoin application-specific integrated circuits (ASICs), has suspended salary payments to its employees starting in September, according to a report published Tuesday by Chinese technology media outlet Leiphone.
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Fast facts
- The company has also eliminated all bonuses given to its staff, in addition to employee salaries, since last month, according to the media outlet. reported citing anonymous Bitmain employees.
- “For the month of September, the company has not yet achieved positive net cash flow, particularly in (new) ASIC orders,” Bitman reportedly said in an internal memo. Employees would face an additional 50% reduction in their base pay.
- Bitmain did not immediately respond to Forkast Request comment on this story.
- Crypto mining companies have come under pressure from the current crypto bear market. Bitmain reduced the price of its S19 Pro mining rig at US$19 per terahash in September 2022, a reduction of 41%.
- Bitmain was founded in Beijing in 2013 and is one of the world’s largest manufacturers of Bitcoin mining ASICs. The company has numerous subsidiaries in the United States, Singapore, Malaysia and Kazakhstan.
- Bitmain was fined $3.6 million over alleged tax violations in China in April.
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