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Mining operations by Bitmain in Texas to shut down

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Bitmain, one of China’s leading mining and mining ASIC hardware producer has shelved its mining operations in Rockdale, Texas as reported by Texas Public Radio on January 10. Rockdale is located in the east of Austin in Texas, U.S. A statement was issued by Steve Young (Milam County Judge) which essentially noted that almost all Bitmain employees were laid off except for the director of Human relations and two engineers. It was also stated that all Bitmain operations had been stopped.

According to the article, The organisation conveyed to Mr Young that all Bitmain operations will be scaled down rather than being shut down as the company will now be working with a workforce of five people instead of fifteen. Young further went on to say that ‘They have spent millions thus far to renovate the buildings. […] I’m told there are 7,000 or 8,000 servers out there already.’

Mr Young following the article cited that the fall of BTC (Bitcoin) value is one of the biggest reasons for the new-laid back-plans by Bitmain. A Bitmain’s spokesman stated that ‘The right-sized team at Rockdale now has the expertise to re-start the project at small scale anytime. Bitmain would like to ramp up the site at a slower pace and scale based on market conditions.’ According to Young, Bitmain has plans of hiring only locals while paying the taxes for the school districts as opposed to taking an abatement. The article suggests that the sole question still concerns the ten-year tax break regarding county taxes on real and personal property.

As reported earlier, Bitmain had plans of developing a blockchain data center worth $500 million along with a mining facility in Texas as a part of the company’s expansion to the United States market. According to various media groups, Bitmain has been thinking about releasing employees from multiple projects. Huobi and Bitmain confirmed their plans of laying off employees in the month of December last year.

A number of Chinese analysts have also come out to confirm that Bitmain has relieved the entire team of BCH (Bitcoin Cash) developers. It was also reported on December 2018 that Bitmain was closing its development center in Israel and that the company was laying off staff.

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