Adding to the Christmas woes, the cryptocurrency market is hit by another bad news. Early morning reports started flowing that Bitmain may lay off its 85% staff. While Bitmain still holds a lot of BCH and LTC, this lay off, according to Kyle Samani, may soon lead to Bitmain liquidating the same.
Bitmain may liquidate its BCH and LTC holdings
As the news of Bitmain’s BCH and LTC lay off hit the market, the sentiment towards these coins become negative. Within hours of this news reaching the street, Kyle Samani, co-founder of crypto fund Multicoin Capital used his Twitter account to put forward that as Bitmain holds a significant amount of BCH and LTC the lay off may lead to Bitmain liquidating its holding in these coins.
This is extremely bearish for BCH and LTC
The only reason to make cuts this drastic are because you're about to run out of cash
Meanwhile, they still have 1 BCH and 1M LTC on their balance sheet. Those are going to be liquidated soon to keep the lights on https://t.co/kneSRcK2li
— Kyle Samani (@KyleSamani) December 26, 2018
Although the current holding (post the BCH Fork) is unknown, a leaked document in August suggested that Bitmain holding towards LTC and BCH were 930,932 LTC (~$28.6m) and 1,021,316 BCH (~$176.7m).
In most likelihood, the holding sell-off would have had taken place if Bitmain ran out of money, but now with this lay off it looks like Bitmain may anytime liquidate LTC and BCH.
Earlier in the day,South China Morning Post came out with a news report which stated Beijing-based Bitmain Technology, the world’s biggest maker of cryptocurrency mining rigs, said in a statement that the company is undergoing “some adjustment to our staff this year” as it continues to build a sustainable business, following reports on Chinese social media that it was planning job cuts.
“A part of that is having to really focus on things that are core to that mission and not things that are auxiliary. As we move into the new year we will continue to double down on hiring the best talent from a diverse range of backgrounds,” said Bitmain in the statement.”
The recent crypto meltdown has left Bitmain with scars that are difficult to heal. The crypto miner has been in al sought of problems since mining bitcoin became unviable as the prices plunged. It had to close down its operations in Israel as well since it couldn’t sustain mining bitcoin as the prices went down.
When will Bitmain dump this coin holding is really difficult to time but investors and traders will have to keep a watchful eye in case the prices fall. If markets improve Bitmain may not sell its BCH and LTC holdings. It’s really difficult to state what will Bitmain do next.
Will Bitmain immediately liquidate its BCH and LTC holding? Do let us know your views on the same.