Bitmain is arguably the largest cryptocurrency company in the world. Its proceedings of mining cryptocurrencies and selling the mining gear itself managed to gain them quite a capital in the past. But all that goes up must come down.
The price of cryptocurrencies isn’t the only thing that has been falling these past few months. Just when BTC started to decrease other cryptos followed, and the same happened with mining gear ultimately tampering with both of the sources of revenue for Bitmain.
The branch in Israel
Before the price decrease the Chinese crypto giant had massive plans to envelop the whole world in branches and offices, and it looked like they were on the right track when they opened an office in Raanana, Israel.
The branch was focusing on developing AI technology for Bitmain and managing mining pools called Connect BTC. The head of the venture was Gadi Glikberg, who assumed the title of VP of International Sales and Marketing.
Back when Bitcoin was it’s healthiest, it had a market value of around $109 billion. But at its current price, it is around $61 billion. Although Bitmain is the company that mines most of the major cryptocurrencies it was still a very big hit for them to lose so much money over just a year’s span.
Losses upon losses
The value of the company is believed to be around $12 billion, according to Bitmain themselves, but looking at the market for cryptos and miners today, it’s highly unlikely.
Regardless of what was the reason, it is clear that the Israeli branch needs to now start seeking opportunities around the globe, companies looking for Blockchain experts and enthusiasts. But this may prove hard as the demand keeps on going down. It’s quite sad to see the branch go, as it was in the process of preparing for a productive year. The development of AI also seemed like an interesting idea, but alas the current economy has prevented it.
Is this a warning to Bitmain employees?
Bitmain employees are obviously quite worried about the future of the company, but it’s very unlikely that something as serious as massive lay offs would happen. The processes will slow down for now, but in the future it will pick itself back up again as Bitmain is at work looking for solutions.