The price of Bitcoin is presently going through its worst phase yet, trading at 80% less than its previous robust price which has affected a lot of crypto-related companies and even the largest of them, Bitmain, is not spared.
Globes, a business publication in Israel has reported that Bitmain, the China-based cryptocurrency company, has closed its branch, Bitmaintech, opened two years ago in Ra’anana, Israel. This close down will affect the employment of 23 employees as well as Gading Glikberg, the VP in charge of the branch.
Bitmain said the reason for the layoffs was because of the extended bearish trend of the crypto economy which first began earlier in the year and has not gotten any better but rather worse every month. According to the report, Gilbert speaking to the employees said:
“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.”
Bitmain’s primary focus as a business is the development and production of equipment used for mining cryptocurrency and on the other hand, the Israeli branch was tasked with the development of artificial intelligence and the Connect BTC mining pool which will be instrumental to the success of the “Sophon” project which is being carried out by Bitmain.
The closing of the Ra’anana office outlet goes contrary to the decision Bitmain took in July which was to make its development center in Israel tripled in size. The Ra’anana center had only 15 employees as at the time the statement was made.
Bitmain has also encountered problems originating from bad decisions in business and the declining prices of cryptocurrency has jointly affected the financial records of the company even at a critical stage such as this, when the company is working towards the launch of its initial public offering (IPO), which Bitmain had already registered since the beginning of the year. In addition, the Bitcoin mining firm also went through a significant reshuffling of its board of directors recently.