Bitmain’s dream turned into a nightmare: the company lifts its giant projects into a rack Mining equipment manufacturer Bitmain is about to lose its leadership position in the sector due to errors in the administrative level.
Bitmain was planning to build a gigantic mining facility in Rockdale, Texas, but the mining giant seems to have picked up the plan for now.
The company has announced that it will shrink both the business scale and the number of its staff with the impact of the deterioration in the crypto money market. According to Texas Public Radio, Bitmain, Rockdale’da $ 500 million investment in mining and data center plans to give up gave instant. Milam County Judge Steve Young said:
I was really disappointed. We really wanted this and we waited for it. We welcomed the project, it was a really big project. We need positive news in the district. The tax base needs to be expanded.
In mid-2018, the company announced plans to build a huge-scale Bitcoin mining center in North America. At that time, Bitmain, Alcao Aluminum factory in the area, in 2019 would create employment opportunities for 500 people said. Apparently, things are not going as expected in the town of Milam. So much so that the town’s former judge, Dave Barkemeyer said the town has lost 30% of its tax revenues in the last 10 years.
Bitmain has not yet made a statement. However, the spokesman of the Bitmain hinted that the company has been shrinking in its operations in the United States. The company is continuing layoffs in various departments. Bitcoinist announced on Thursday that Bitmain’s founders will leave their administrative posts and a new CEO will be appointed to the company. Since December of last year, Bitmain has devoted some of its employees in R & D and Bitcoin Cash development department.
The company suffered a record loss of $ 700 million in the third quarter of the year due to the decline in Bitcoin Cash. As a result, as Bitmain’s monopoly in the sector weakens, things in the company will continue to deteriorate. As it is to be remembered, in the middle of 2018, Bitmain-controlled Bitcoin mining pools Antpool and BTC.com were close to controlling 51% of the total hash rate in the network. At present, the total dominance rate of these two mining pools is 26.2%.
Bitcoin Cash’s disagreements on the company’s managers have also severely damaged Bitmain. The co-founders of Bitmain, Jihan Wu and Ketuan Zhan, are finally preparing to withdraw from the CEO position. But once the spoon was broken. Jihan Wu, along with Roger Ver, thought that Bitcoin Cash would defeat Bitcoin. But Wu’s dream is now turning into a nightmare.