The massive drop in the prices of cryptocurrencies has forced many crypto firms to either close their operations or lay off their employees . Consequently, reports claim that Chinese leading bitcoin mining giant, Bitmain is probably scaling back its mining operations in Rockdale Texas. It is the same location Bitmain proposed to begin its mining facility in the first quarter of this year.
Bitmain struggling amid falling crypto prices
- Bitmain shuts down Company’s Israel Office
- Bitmain’s IPO suffered due to huge losses
- Jihan Wu may step aside from CEO’s chair
- Bitmain plans in Texas on hold for now
So called ‘Rockdale Mining Farm Site’ by Bitmain was expected to create ‘400 jobs within the region of Texas’. Not only this, the firm has recently decided to lay off its half of the staff from the company itself. The news of suspending and holding its plan of ‘setting Texas data-centre plan’ has been confirmed by Steve Young, Milan County Judge. According to him, the declining prices of stock and crypto market’ is the biggest reason behind Bitmain’s plan of holding Texas mining.
Bitmain is likely sinking in a major loss due to the bearish market and has been rumored that its profit for last year was seen in a negative mark. On top of that, an inside source unveiled the firm is replacing CEO ‘Jihan Wu’ and will no longer on the company’s daily operations.
Breaking: Jihan is removing himself from CEO role as he sees high probability of bankruptcy. Removing from CEO will decrease personal liability! In addition early estimates, Bitmain 2018 Profits were NEGATIVE $1,2 Bilion !!!
— BTCKING555 (@btcking555) January 10, 2019
Furthermore, Milam County Judge Steve Young also added that even if Bitmain steps ahead for operation, ‘it would be on a much smaller scale’. The region despite the ‘best resource available’ have lost two largest employers which have eventually resulted in a 30 percent tax laws, Dave Barkemeyer, Former Milam County Judge said.
Steve Young embraces the facility of the location, its roads, water, cheap electricity, sewage’ and said;
“Something ought to happen out there. It’s such a great place. They have a huge power grid they’re tied into with cheap electricity. There’s a lot of promise there,”
Not Leaving Rockdale but Restarting the Project at Small Scale
Bitmain’s decision has disappointed the peers who were involved in the advertisement and promotion of the Milam Country Judge. Steve Young urged that ‘we had waited for this, we had wanted this’. Furthermore, Bitmain Technologies didn’t confirmed anything yet but an email received by Young from team Bitmain revealed;
“The right-sized team at Rockdale now has the expertise to re-start the project at small scale anytime. Bitmain would like to ramp up the site at a slower pace and scale based on market conditions,”
Nonetheless, It is clear from the email that Bitmain hasn’t shut down yet but ‘will reorganize at small scale’. With this, Rockdale City Manager Chris Whittaker is still confident on Bitmain to re-start the project in near future and other companies to the Alcoa property’, he added.
I am optimistic that maybe they (Bitmain) are reorganizing. They haven’t totally shut down. All those things are encouraging
Interestingly, when Bitmain announced the plan of Texas and $500 million dollar investment in a region, Bitcoin was trading at more than $8000 and today it is valued for less than $4000. According to the data from coinmarketcap, Bitcoin’s average trading marketcap is $64,555,106,854, losing almost four percent during 24 hrs.
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Tabassum is a full-time content writer at Coingape. Her passion lies in writing and delivering apt information to users. Currently, she does not hold any form of cryptocurrencies. Follow her on Twitter at @Tabassumnaiz and reach out to her at Tabassum[at]coingape.com