Year Long Bear Market Taking Toll on Bitmain, After Lay-offs Company Scales Back the Texas Plan

Tabassum Altcoin News January 11, 2019

Year Long Bear Market Taking Toll on Bitmain, After Lay-offs Company Scales Back the Texas Plan

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.

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.

Summary
Year Long Bear Market Taking Toll on Bitmain, After Lay-offs Company Scales Back Texas Plan
Article Name
Year Long Bear Market Taking Toll on Bitmain, After Lay-offs Company Scales Back Texas Plan
Description
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.
Author
Publisher Name
Coingape
Publisher Logo
Disclaimer The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Author: Tabassum

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

Post your comment...

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

Follow Tabassum @