The world’s largest Bitcoin mining company is facing a severe financial crisis. Recently, Bitmain, the leading Bitcoin mining equipment manufacturer, announced a delay in paying its employees for September due to a lack of positive cash flow. This indicates that Bitmain is grappling with an extremely serious financial crisis.
In an internally confirmed source on October 3rd, the company stated that its cash reserves are at risk of running out by the end of this year or even sooner. The current situation has led Bitmain to be unable to pay the September salaries on time for some of its employees.
Just a few days ago, Bitmain unveiled the Antminer S21 device during its event in Hong Kong. This was touted as a solution to bring better and more powerful Bitcoin mining performance that miners should not overlook. However, it has not helped improve the financial situation of the company.
Despite innovations in mining equipment, the Bitcoin industry is experiencing a significant downturn with the lowest hashing prices in history. This downturn is exerting immense pressure on miners worldwide, forcing them to reconsider their strategies to adapt to the changing environment.
Before the peak Bitcoin prices last year, an increasing number of miners joined the network, reducing the output of each miner even when using the most advanced mining rigs. Faced with high energy prices and declining profits, many have abandoned Bitcoin mining, leading to a sharp decline in revenue for Bitcoin mining equipment manufacturers, reaching alarming levels.