
Disappointing sales are the main reason behind Bitmain's move to furlough employees in Beijing, local media reported.
Bitmain, the world's biggest manufacturer of hardware designed for mining cryptocurrency, has announced it will discontinue paying salaries for September and beyond, China's tech media outlet Leiphone reported on Tuesday.
The Beijing-based company, which makes application-specific integrated circuit tuned for the job of mining crypto, has reportedly cut some staff, reduced all 'bonus and incentives' and still has not paid remuneration due since last month.
Bitmain, established in 2013 and now holding an estimated 70% market share of ASIC production at its peak periods, has become one of the most significant players in the industry. The company's Antminer ASIC series is currently the industry's best in terms of Bitcoin mining's hash rate computations.
In August 2022, Bitmain announced a rewards program for loyal customers who paid for orders placed before the so-called that saw prices for common cryptocoins crash and investors cool off on the instruments after events like the collapse of FTX and TerraLuna. Long-term customers were able to earn more rewards by using a loyalty program from the company, which offers even greater rewards for larger orders.
Bitmain announced plans for an initial public offering in 2021 with a $5-billion valuation by late 2022. The ongoing bear crypto market has presumably forced the company to shelve the plan.