NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: SOL Strategies: The First Solana Treasury Company Listed On Nasdaq
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: SOL Strategies: The First Solana Treasury Company Listed On Nasdaq

Crypto Analyst: Shutdown Of Bitmain’s Mining Operations Isn’t A “Big Deal”

Nick Chong
Nick Chong
6 years ago
3 mins read

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

While Bitmain has made forays into artificial intelligence and other budding markets, at heart, Bitmain is a Bitcoin– 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.”

Bitmain’s Crypto Mining Operations Reportedly Folding

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 have essentially been confirmed, those familiar with the matter have claimed that the company’s layoffs run even deeper.

Some reports claim that up to 85% 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.

Alex Krüger, a leading crypto commentator and researcher, recently commented on the aforementioned rumors, claiming that if they’re true, Bitmain isn’t fini. 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.

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.

Source: Bitmain's IPO prospectus (https://t.co/SWZmKSFgDC) pic.twitter.com/eVZibd86p8

— Alex Krüger (@krugermacro) December 30, 2018

More specifically, per Bitmain’s H1 financial data, which was routed through its IPO prospectus, operating pools amounted to 1.5% of Bitmain’s revenue. While Bitmain mining crypto for itself, a practice deemed controversial, generated a relatively mere 3.3% of its cumulative revenue. And, considering that the firm has 535 staffers, an approximated 20% of all employees, managing the two aforementioned operations, it is logical why the firm is mulling over these cuts.

Hinting that this move could be a net benefit for the crypto industry (save for the layoffs), Krüger noted that if the rumors are true, second-hand mining hardware may make their way to consumers, as Bitmain’s mining farms change hands. This means that the potential loss in hashrates across the board, catalyzed by Bitmain’s shift in strategy, will be reversed over time, so network security can be upheld.

Related Reading: Bitcoin Can’t Fall To $0 Nor Enter A “Death Spiral” — Mining Rules Deem It So

Bitmain Isn’t In the Clear Just Yet

While Krüger debunked the catcalls regarding Bitmain’s mining arms, local media and inside sources have claimed that the startup isn’t in the clear.

Dovey Wan, the founding partner of Primitive Capital and well-known industry insider, recently took to her well-followed Twitter soapbox to convey a rumor that could turn the cryptosphere on its head. Wan claimed that a local outlet, OriginalPlanet Daily, has stumbled across rumors that both Jihan Wu and Micree Zhan will step down from their co-CEO positions at Bitmain.

If these rumors are true, a businessman with the surname Wang will reportedly take over Bitmain’s CEO slot. Due to Bitmain’s extensive list of employees, there are a number of top brass surnamed Wang. Dovey Wan has suggested the successor in question could be Haichao Wang, the director of product engineering, or Shengli Wang, a former member of Huawei’s board of directors.

Speaking with OriginalPlanet, one familiar with Bitmain suggested that the co-CEO system wasn’t operational, quipping that Wu and Zhan haven’t been able to work in tandem. However, due to the fact that Bitmain hasn’t publicly commented on this debacle, it remains to be seen if these rumors hold their water. Yet, over the past few months, it has been hinted that Wu forfeited the ability to influence Bitmain’s operational decisions, and remains only as a figurehead.

This internal tumult, coupled with regulatory concerns and this industry’s nascency, has led sources to claim that Bitmain’s long-rumored initial public offering (IPO) has stalled, failing to make it off the starting block. Citing “two sources familiar with the matter,” the South China Morning Post noted that it is too premature for any crypto firm to make their way onto the Hong Kong Stock Exchange before the “proper regulatory framework is in place.”

Featured Image from Shutterstock
Tweet123Share246ShareSend
Nick Chong
Nick Chong

Nick Chong

I am a writer who has been following Bitcoin for years now. My insights and interviews have been featured in leading publications in the industry such as LongHash and Decrypt. I own a small amount of Bitcoin.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

Bitcoin price

On-Chain Data Reveals Critical Support Levels For Bitcoin Price — Details

The Bitcoin price has managed to stay above $110,000 over the weekend, and on-chain data shows that the premier cryptocurrency...

Opeyemi Sule 8 hours ago
Dogecoin ETFs kunnen volgende week starten - meme coin miljonair seizoen?

Dogecoin ETFs kunnen volgende week starten – meme coin miljonair seizoen?

Een historisch moment lijkt aanstaande: de lancering van een Dogecoin ETF. Deze belangrijke ontwikkeling kan veel teweeg brengen en de...

Lars Diederiksen 9 hours ago
Bitcoin

Bitcoin STH-SOPR Metric Reclaims Critical Level — More Pain For Short-Term Holders?

The price of Bitcoin has shown signs of resilience and strength over this weekend after facing significant bearish pressure heading...

Opeyemi Sule 12 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Deepseek-ai-top-4-cryptos-2025-pepe-x-1000x-tw

DeepSeek AI預測2025年底4大熱門幣價格 新Pepe幣有望升幅1000倍

Mark Mak 18 minutes ago
Bitcoin Price Weakens

Bitcoin Price Weakens – Fresh Downside Risk If Bulls Fail Soon

Aayush Jindal 35 minutes ago
Santiment

Santiment Highlights Top Tokens: Bitcoin, Ethereum, And Dogecoin Dominate Social Buzz

Scott Matherson 6 hours ago

Premium Sponsors

Press Releases

  • ドージコイン 今後4ドル到達の可能性、新興ミームプロジェクトが200万ドルICOに迫る

    ドージコイン...

    1 day ago
  • 仮想通貨おすすめ:新興レイヤー2プロジェクトがプレセールで1,420万ドル突破

    ...

    1 day ago
  • シバコイン 今後の可能性と、新たに浮上する注目のレイヤー2プロジェクト

    シバコイン...

    1 day ago
  • ビットコイン 今後の展望:長期眠っていたBTCウォレットが突然52億円分を移動

    ビットコイン...

    1 day ago
  • パイネットワーク 価格分析:バンド収束から爆発的上昇の可能性、ウォルコフ指標が点灯

    パイネットワーク...

    1 day ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.