Mining Giant Bitmain Closes Its Israeli Branch amid Market Woes

Since the bitcoin trading price more than 80 percent below its all time high, the bitcoin mining giant Bitmain, one of the world’s largest crypto mining firm and the most valuable company in the cryptocurrency industry, has been a immune from the slaughter. According to the publications of the Israeli business, Globes, a china based Bitmain has closed Bitmaintech Israel, the main development center has set up in Ra’anana, two years ago. In the office, all the 23 employees would be laid off and the Vice President of the Bitmain VP Gadi Glikberg, who has been headed the center, will also be going to depart the firm.

The Mining giant Bitmain blamed the layoffs on the prolonged bear market of the cryptocurrency which began at the turn of the 2018 year and has been worsened with every passing month. According to the reports, Glikberg told employees that, “The crypto market has undergone a many ups & downs in the past months, which has forced the Bitmain to examine its activities around the globe and refocus its business with the accordance of the current situation of it.” Even though the core business of Bitmain involves the manufacturing and developing the cryptocurrency mining equipment, the firm’s office in the Israel had focussed all of its efforts in developing the Connect Bitcoin mining pool and the AI ( artificial intelligence) technology used in Sophon project of the Bitmain.

The decision to shut down, Bitmain office in Ra’anana represents a stark reversal from past July, reportedly when the Bitmain was seeking to maximise its size by tripling its Israeli development center, where there were 15 employees at that time. In addition to this, However the general decline in the prices of cryptocurrency, reportedly the Bitmain has also faced downfall from its poor poor decisions that made to continue to weight on its balance graph as it has grind toward its long planned IPO (internal public offering), for which the Bitmain has registered its documents previously in this year 2018. The mining giant also recently undergone a significant shakeup on its directors board.