2018 has been a year of agony for Bitmain and other crypto miners as cryptocurrency prices crumbled to yearly lows. While the markets still struggle to find a support on the downside, the problem for Bitmain continues to rise. According to the recent reports Bitmain has to shut down its Israeli office as things have turned really sour for the leading crypto miner.
Bitmain’s Israeli centre closure render 23 employees jobless.
According to the report published in local Israeli mouthpiece Globus, Bitmain’s development center, which was set up in Ra’anana nearly three years ago under the direction of Gadi Glikberg, will close this week and all 23 of its employees will be fired. This would also bring an end to Glikberg’s stint with Bitmain who served as vice president of Bitmain Worldwide. The closure of Israeli operations for Bitmain shows that the sharp fall in the price of the Bitcoin has made things really difficult for crypto miners
Glikberg, probably, in his last statement at the company spoke to his employees in Israel where he said
“The crypto market has been in turmoil for the last few months, forcing Bitmain to examine the various activities in the global company and to refocus activities according to the current situation.”
The Israeli development center of Bitmain, which was founded in 2016, was involved in the development of blockchain technologies, the development of the ConnectBTC mining base and the development of AI technologies under the Sophon project. The office was headed by Glikberg who not only served as vice president of BitMain in Israel but was also responsible for global sales and marketing at the company.
All seem to have gone fine with the Bitmain’s Israeli office before lightning struck and bought down crypto prices. Bitmain had also announced in July that it was expanding the Israeli facility as part of its effort to double down on its research and development activities. Its been only 5 months since then and now the closing news shows how fragile the industry is.
This is another fit to Bitmain. Bitmain, already facing a number of issues since the beginning of 2018, is also reportedly in major debt to the Taiwan Semiconductor Manufacturing Company (TSMC), and the company’s CFO has already issued an ultimatum: “pay or we cut you off for good.”
A Twitter user has briefly summarized Bitmain’s agony for the year 2018, covering all the points that hurt Bitmain.
In less than a year Bitmain went from industry’s most profitable to most money losing. Reasons:
-wrong bet on BCH
-over-order of old wafers with TSMC
-top chip designer team left
-failed/delayed new chips
-shady corp. governance
Its been truly a Year of Dog😱#bitmainipo
— BTCKING555 (@btcking555) December 9, 2018
Will Bitmain be able to revive itself or will it fade out under the pressure? Do let us know your views on the same
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Divya Bhatia from Computer science background 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. Reach out to her at [email protected]