Bitmain is slowly scaling down its mining operations and in the process, it has temporarily halted the mining operations in its Rockdale, Texas facility. The development has been reported by local news media outlet Texas Public Radio on January 10th and there is no words from the mining giant on when the operations will resume.
The decision to halt the mining operations is the result of a sharp decline in cryptocurrency prices which has greatly reduced profitability. Lately, the company had scaled down its operations in Texas facility, which once employed 15 employees and at the time of suspension had only 5 employees.
Bitmain had invested heavily in the mining facility of Texas and it is said that there are an estimated 7,000-8,000 mining units within the facility. Mining facilities all around the world are facing difficulties in continuing with operations with prolonged bear phase and are exiting the space with huge losses.
Bitmain, which had plans to list its share on Hong Kong Stock Exchange has likely shelved the plan. Its CEO Jihan Wu is also likely to step down from the position due to the catastrophic failure of Bitcoin Cash gamble. Bitmain had converted its significant part of the Bitcoin balance to Bitcoin Cash balance during the peak period in the cryptocurrency market. But with the massive drop in BCH prices, its BCH holding value has fallen drastically.
Recently, Bitmain has also laid off its entire Bitcoin Cash Development Team after shutting down its facility in Israel.
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