Bitmain reveals divestiture plans for Antpool, the leading BTC mining pool

Bitmain, the world’s leading Bitcoin mining rig manufacturer recently concluded its semi-annual shareholder’s meeting where it revealed the progress of Antpool divestiture, the world’s leading Bitcoin mining pool. The mining chip manufacturer received shareholders nod to make its mining pool operations independent of the parent company in the first quarter and completed all the legal proceedings by May 1st. The firm said,

“At present, we are still doing some business sorting and will complete related actions as soon as possible. “Antpool” will independently carry out mining pools and other businesses overseas after obtaining the support of new shareholders.”

The decision to make Antpool’s mining operations independent of Bitmain was taken to expand its mining pool services outside China. The decision by the company seems timely looking at the recent crackdown by the Chinese authorities on mining operations. Antpool is one of the largest mining pool operators that offer services for ten cryptocurrencies. It is also among the biggest Bitcoin hashrate contributors at present.

Bitmain said it would continue its focus on R&D for mining chip manufacturing and hopes the support of new shareholders would help Antpool expand its business around the world.

Chinese crackdown has hampered crypto mining businesses progress

The Chinese crackdown this bull season has hit bitcoin mining businesses the worst. As mining hashrate dropped by more than 50% in May-June, so did the demand for crypto mining equipment. Bitmain had to slash the price of its flagship Bitcoin mining rig during the peak of the crackdown. However, Bitmain revealed the Chinese crackdown on mining operations won’t hamper their business adversely since their major customers base is outside China.

Most of the giant mining pools operating out of China had to relocate to other countries with favorable government regulations for mining and cheap electricity. Many small miners sold their mining rigs on the second-hand market. The Chinese authorities have been quite strict with their crypto crackdown this time around as they have virtually wiped out the biggest mining population from a country that constituted nearly 50% of total Bitcoin miners.