Market Bear Pushes Bitcoin Mining Giant Bitmain To Close Its Israeli Branch
The bear cryptocurrency market is taking its toll and not even the world’s largest cryptocurrency mining firm, Bitmain could stand unhinged. With Bitcoin (BTC) dipping more than 80% below its all-time high, Bitmain shuns its Israeli Branch.
According to Israeli business publication Globes, Bitmain has closed down the Bitmaintech Israel, a development centre that was opened two years ago in Ra’anana. All its 23 employees have been laid off, including the head of the centre VP Gadi Glikberg.
The China-based cryptocurrency exchange blames the crypto winter, a name given to the prolonged cryptocurrency bear market, for all its woes. Per the report, Glikberg told employees:
“The crypto market has undergone a shakeup in the past few months, which has forced Bitmain to examine its various activities around the globe and refocus its business in accordance with the current situation.”
The core business of Bitmain is to develop and manufacture cryptocurrency mining equipment. The Israeli branch was aimed to develop a Connect BTC mining pool and the artificial intelligence (AI) technology used in Bitmain’s “Sophon” project. Reportedly, in July Bitmain was planning to triple the size of its Israeli development centre, which at the time had 15 employees. This closure of the Ra’anana definitely implies that things did not go as planned.
While the market indeed has an ill effect on miners and other cryptocurrency businesses, Bitmain is reportedly facing the bear of poor business decisions that reflect badly on the balance sheet. While it is on its way to offer initial public offering (IPO), the board of directors have had quite a shakeup recently.
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