In the recent reports, it is stated that Bitmain will be shutting down its Israeli Office as things didn’t work according to plan for the leading crypto miner. As a result of this closure, the employees will be unemployed in a matter of a few days. Bitmain’s Development center is located in Ra’anana and led by Gadi Glikberg will be shutting down this week, and all the 23 employees will be fired, according to a Local Israeli Globus.
Glikberg, Vice president of Bitmain worldwide, will have to end his duties as the event occurs. The fall of Bitcoin price in the cryptoverse has genuinely made things extremely challenging for crypto miners. In one of the final statements that he made in the company while addressing his employees in Israel was ‘The crypto market has been in turmoil for the last few months, forcing Bitmain to examine the various activities in the global company and to refocus activities according to the current situation.’ Crypto market crash has left Bitmain in a vulnerable position.
Founded in the year 2016, Bitmain’s Israeli development center was working on the development of blockchain technologies, development of BTC mining as well as on the development of AI technology in collaboration with the Sophon project.
Besides serving as the Vice president at Bitmain, Glikberg was also responsible and deeply involved in global sales and marketing at the company. Closure of this Israeli office is directly linked to crypto prices going down.
Five months ago, Bitmain had come out to announce that it was planning on expanding the Israeli facility as they wanted to double down on research and development activities. With falling crypto values, Bitmain was forced to change its ideas. This is an ideal example to show how volatile and sensitive this market is.
These are just a few problems that Bitmain is witnessing at the moment. Another major issue that the company is facing is that it is under significant debt. Debt has to be paid to the Taiwan Semiconductor Manufacturing Company (TSMC). The Chief Financial Officer of TSMC has issued an ultimatum to Bitmain warning the company, either ‘you pay us off, or we cut you for good.’
As we reported earlier in our story ‘Cryptocurrency miners are being shut down’ Bitcoin mining has been witnessing problems and inefficiency in the past weeks. As a result of things happening in the cryptoverse, major cryptocurrency platforms are closing down their research and development activities.