The massive drop in cryptocurrency prices has forced many companies scrambled to shut down their operations or fire their employees. As a result, reports say that the leading Chinese bitcoin mining giant, Bitmain, is probably scaling down its mining operations in Rockdale, Texas. It is the same position that Bitmain proposed to begin mining in the first quarter of this year.
Bitmain is struggling with falling cryptic prices
- Bitmain closes the Israeli office of the company
- The IPO of Bitmain suffered because of huge losses
- Jihan Wu could step aside from the chair of the CEO
- Bitmain plans in Texas are waiting for now
The so-called "Rockdale Mining Farm Site" in Bitmain was supposed to create "400 jobs in the Texas region". Not only that, the company has recently decided to lay off half of the company's own staff. The news of suspending and maintaining his "data center plan in Texas" plan was confirmed by Steve Young, a county judge in Milan. According to him, falling prices in the stock market and encrypted is the main reason for Bitmain's plan to keep the mining industry in Texas.
Bitmain is probably sinking into a major loss due to the bear market and it is said that its profit for the last year was seen in a negative sign. Beyond that, an internal source has unveiled that the company is replacing the CEO & # 39; Jihan Wu & # 39; and will no longer be part of the company's daily operations.
Breaking: Jihan is removing himself from the role of CEO because he sees high probability of failure. The removal from the CEO will diminish personal responsibility! Moreover, initial estimates, the profits of Bitmain 2018 were negative by $ 1.2 billion !!!
– BTCKING555 (@ btcking555) 10 January 2019
In addition, Milam County Judge Steve Young added that even if Bitmain was ahead for the operation, "it would be on a much smaller scale". The region, despite the "best available resource", has lost two major employers that have led to a 30% tax law, said Dave Barkemeyer, a former Milam county judge.
Steve Young embraces the structure of the place, its streets, the water, the cheap electricity, the sewage & quot; and said;
"Something's going to happen out there, it's a great place, they have a huge power grid that they're connected to with cheap electricity." There are many promises there. "
Do not leave Rockdale but restart the project on a small scale
Bitmain's decision disappointed colleagues who were involved in advertising and promoting the Milam Country Judge. Steve Young urged thaWe have waited for this, we had desired it'. Furthermore, Bitmain Technologies has not yet confirmed anything, but an email received by Young from the Bitmain team revealed;
"The Rockdale team now has the skills to restart the project on a small scale at any time – Bitmain would like to increase the site at a slower pace and scale to market conditions"
However, it is clear from the e-mail that Bitmain has not yet closed but & # 39;will reorganize on a small scale. With this, Rockdale city manager Chris Whittaker is still confident about Bitmain restarting the project in the near future and other companies in Alcoa's property, "he added.
I am optimistic that maybe they (Bitmain) are reorganizing themselves. They have not completely closed. All these things are encouraging
Interestingly, when Bitmain announced the Texas plan and a $ 500 million investment in a region, Bitcoin was trading at more than $ 8000 and is now valued at less than $ 4000. According to coinmarketcap data, the Bitcoin's average marketcap is $ 64,555,106,854, losing nearly four percent in the 24 hours.