Uncertain future: Bitmain suspends mining Bitcoins

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Bitmain, the world’s largest manufacturer of equipment for mining cryptocurrency is experiencing turbulent months associated not only with the change of senior management, but with the closure of the mining center in Texas Rochdale.

While Bitmain announced only the suspension of its activities in the city of Rockdale, although it was planned that this mining farm will be the largest in the United States. Now, against the background of unfolding in company events, her future looks more than uncertain.

City officials expressed their disappointment because the expected increase in tax payments after running the farm and providing jobs for professionals.

A necessary adaptation to market conditions

Bitmain has announced their plans to build a major mining centre in August 2018 and was going to invest in the company over a seven-year period, more than $500 million In the period, the cost of Bitcoin stood at about $8000 and in this period the first cryptocurrency dropped to $3600.

Amid falling market, the representative of Bitmain said that the company is now forced to adapt to market conditions:

“Bethany Rochdale team has good experience and will be able at any time to resume the project, but on a smaller scale. We have to increase the pace of work is slower, paying attention to market conditions”. However, it was recently reported that Bitmain has plans to lay off more than 50% of its employees, and Rochdale staff was reduced from 15 to 5 people.

A change of leadership

The news about the termination of the Bitmain in Texas came after the reports about the change of management of the company. Co-founders Jihan Wu and Zhang Kechuan leave occupied by them in the company of posts and appointed a new General Manager. They reportedly will be Haichao Wang, who has been acting since December.

Bitmain filed last year, an application to hold an IPO on the Hong Kong stock exchange (HKEX). However, it seems that the chances of the company to public listing decrease if the new Manager will not be able to accomplish a miracle.

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Label: Bitmain

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