Bitmain Temporarily Halts Employee Salary Payments

According to multiple internal employees of Bitmain, a cryptocurrency mining machine manufacture, the company will temporarily withhold partial salaries for all employees in September and will distribute them after October 7th depending on the situation. The reasons are, as stated by Bitmain’s official notice, the operating cash flow for September has not turned positive yet, especially with regards to the progress of mining machines entering the mining farms.

Centered around its brand “Antminer,” Bitmain once monopolized over 70% of the global Bitcoin mining machine market share. In 2018, Bitmain went for an IPO in Hong Kong. According to their prospectus at that time, their mining machine sales volume reached 2.56 million units in the first half of 2018, accounting for nearly 95% of the total revenue. Net profit was $743 million USD, an almost eight-fold increase compared to the previous year. The company’s valuation reached $12-15 billion USD.

However, the attempt failed, followed by a significant blow caused by an internal power struggle between co-founders Wu Jihan and Zhan Ketuan over control of the company.

SEE ALSO: Bitmain Halts Shipment of Antminers to Chinese Consumers