🔥 TOP STORY
Ethereum Price Predicted to Climb in the Long Run as Buterin Explains Need for Higher Coin Values
Ethereum Price Predicted to Climb in the Long Run as Buterin Explains Need for Higher Coin Values

Market Bears Force Bitmain to Close Its Israel-Based Development Center

  • Alex Morris
    📰 News

    After raking in massive earnings in the first half of 2018, Bitmain struggles to get back on track as the profitability of Bitcoin mining keeps plummeting

Market Bears Force Bitmain to Close Its Israel-Based Development Center
You may also like:
Contents

Bitmain, the Beijing-based mining giant, was hit hard by the market crash. The ASIC chip manufacturer has recently closed its office in Israel, cutting off a slew of employees.

Blame it on the bears

On Monday, Israeli news outlet Globes revealed that a local Bitcoin office will be shut down this week, and 23 of the workers will be fired. While it’s certainly not a huge number for the biggest cryptocurrency-oriented company in the world, it vividly shows the destructive force of the market bears.

Bitmain’s Gadi Glikberg, who apart from spearheading Bitmain Israel Tech was also responsible for international sales, is also out. Glikberg states the current state of the cryptocurrency market is to blame — Bitcoin has plummeted to its 15-month low as the bloodshed continues all on fronts. Currently, Bitmain is ‘refocusing’ its activities.

A solid springboard for employees

The main focus of the research center, which was established back in 2016, was placed on Blockchain and artificial intelligence (AI). Notably, that was the only research center of such kind outside of China. The expansion of the center took place in August 2017 when Bitmain hired 23 employees (researchers in Blockchain, software engineers, testers, etc.).      

The news about the layoffs might be devastating for some employees, but Glikberg states that many companies are already interested in employing them. He believes that they’ve managed to build “an amazing team.” Their HR takes care of recruiting those people who were affected by Bitmain’s recent firing spree.

👉MUST READ Chinese Gov’t Threatens Miners with Power Cuts, Demanding Them to Register

Bitmain’s future remains murky

After enjoying its near-monopoly status, Bitmain is facing serious woes with TSMC debt talks and the overall decline of cryptocurrency mining, not to mention the debacle surrounding its initial public offering (IPO) and its very front-loaded success tinted with various controversies. At this point, the much-hyped IPO remains in doubt.

Only the most important posts per day. Infographics, analytics, reviews & summaries. Join our Telegram channel!
👓 Recommended articles
something-wide
something-wide

Bitcoin Mining Revenues Drop to 19-Month Low, but There Is a Silver Lining

  • Alex Morris
    📊‍ Infographics

    👷🏻‍♂️🖥️✊After raking up almost $1 bln in mining revenues back in January 2018, miners have to deal with much smaller numbers

Bitcoin Mining Revenues Drop to 19-Month Low, but There Is a Silver Lining
You may also like:
Contents

The total mining revenue fell to a 19-month low back in February, a recently published Diar report shows. However, the silver lining is that gross margins (the difference between revenue and the cost of equipment) increased to 39 percent in February.

👉MUST READ Top Cryptocurrencies by Mining Revenue in 2019: Bitcoin (BTC), Ethereum (ETH), Zcash (ZEC), Litecoin (LTC), and Bitcoin Cash (BCH)

A steep decline

Bitcoin miners earned slightly more than $190 mln this February, which is a world of difference compared to the $516.6 mln they raked in last year. This January, miners managed to make $210 mln (compared to an eye-popping $951 mln in 2018).   

Firing up the latest ASICs

The aforementioned report also shows that the flagship Bitmain Antminer S15 generates more return than the previous-generation Antminer S9. The Bitcoin network is currently powered by bleeding-edge equipment.   

A spending spree  

As Bitcoin’s 2020 halving is looming, it is clear that only the strongest ASIC will provide the required amount of hashing power. With miner margins shifting back into growth, large mining operations will fork out top dollar to stay above the fray.

The fastest way to get crypto news is to follow our Twitter. You won’t miss a thing! Subscribe.
👓 Recommended articles
something-wide
something-wide