{"id":366916,"date":"2019-01-01T09:02:50","date_gmt":"2019-01-01T09:02:50","guid":{"rendered":"https:\/\/uniquehot.com\/?p=366916"},"modified":"2019-01-01T09:02:50","modified_gmt":"2019-01-01T09:02:50","slug":"crypto-analyst-shutdown-bitmain-mining-operations","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/crypto-analyst-shutdown-bitmain-mining-operations\/","title":{"rendered":"Crypto Analyst: Shutdown Of Bitmain’s Mining Operations Isn’t A “Big Deal”"},"content":{"rendered":"

While Bitmain has made forays into artificial intelligence and other budding markets, at heart, Bitmain is a Bitcoin<\/a>– and crypto-centric mining startup. So, it should come as no surprise that industry participants were shell-shocked when hearsay arose that Bitmain was poised to shutter a number of its mining-related ventures. However, one crypto analyst has claimed that the firm’s reported shift in strategy isn’t “necessarily a big deal.”<\/p>\n

Bitmain’s Crypto Mining Operations Reportedly Folding<\/h2>\n
Although Bitmain is hailed as the de-facto king of all cryptocurrency startups, the Beijing-headquartered firm has reportedly fallen on hard times. In recent weeks, as covered extensively by NewsBTC, (former) employees have claimed that the industry powerhouse has begun to layoff staffers en-masse. While the purge of Bitmain’s Copernicus team, who managed the Bitcoin Cash GO client, and the Israel development team<\/a> have essentially been confirmed, those familiar with the matter have claimed that the company’s layoffs run even deeper.<\/p>\n
Some reports claim that up to 85%<\/a> of Bitmain’s ~2,500 staffers are on the chopping block, while low estimates stipulate that at least 50% are on thin ice. And although estimates and details vary from source-to-source, an overwhelming majority of reports believe that ~500 of Bitmain’s mining team are on their way out. As to why the startup is aiming to make this drastic change, it has been claimed that conglomerate is purportedly looking to prune its divisions.<\/p>\n
Alex Kr\u00fcger, a leading crypto commentator and researcher, recently commented on the aforementioned rumors, claiming that if they’re true, Bitmain isn’t\u00a0fini<\/em>. The Manhattan-based investor noted that the news that Bitmain is trimming its mining team has been blown out of proportion. He claimed that the firm’s self-run pools and proprietary mining business, the branches Bitmain is looking to trim, provide little economic value to the juggernaut, once valued at over $14 billion dollars.<\/p>\n
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Bitmain is mainly an ASIC chips designer & a mining hardware seller. Operating mining pools provides 1.5% of its revenue. Proprietary mining provides 3.3%. It has 2600 employees, 500+ of work in mining.<\/p>\n
Source: Bitmain's IPO prospectus (https:\/\/t.co\/SWZmKSFgDC<\/a>) pic.twitter.com\/eVZibd86p8<\/a><\/p>\n
— Alex Kr\u00fcger (@krugermacro) December 30, 2018<\/a><\/p><\/blockquote>\n