Blockstream Developers Reportedly Earn $850,000 Annually With Perks The Company Offers
- Cashbleed informs Blockstream is paying $850,000 in salaries to some employees
- There is no official information about these claims
According to a recent report to Cashbleed.com, Blockstream developers have some perks that allow them to earn as much as $850k more per year. This is called the stock option in which developers get paid 20% of their salary in Bitcoin (BTC) at 2014 prices. This means that they would receive around 85 BTC annually as part of their salary.
Blockstream Developers’ Generous Perks
As reported by Cashbleed.com, a site that seems to be making controversial calculations and bold claims about the crypto industry, Blockstream developers could be earning around $700k worth of Bitcoin at current prices.
Although individuals working at Blockstream could leave the company at any moment, they seem to have a very attractive option not to do so. Indeed, they seem to have a salary option in which they receive 20% of their salary paid at BTC prices of 2014.
Cashbleed.com explains that the company has a “scheme” that makes it very difficult for investors to get a return on their investment. The company was able to gather $101 million in three investment rounds from companies such as AXA and Mosaic Ventures.
“Suppose an engineer was hired at $150,000 a year, and an extra 20% of their salary was paid as a bonus on top in Bitcoin. 20% of the salary would be $30,000. Blockstream then pays that amount in BC assuming a price of $350/BTC. $30,000 / $450 = 85 BTC to the employee, worth roughly $700,000.”
The firm suggests that if a normal employee earns $850,000 a year, the salaries of senior executives are likely to be higher than this amount of money. According to Cobra, the owner of Bitcoin.org, this shows that Blockstream has been paying salaries that are not related to the products they launched to the market.
How Blockstream's employees have been paying themselves grossly inflated salaries, despite the company's lack of success with any real products. https://t.co/0Ks06JO0xL
— CØ₿RA (@CobraBitcoin) June 6, 2019
In any case, if the company decides to pay such large sums of money to its employees they are free to do it. Then investors would decide whether they invest millions of dollars in Blockstream’s developers or not.
As reported by news.bitcoin.com, which has a contrarian view of Blockstream and Bitcoin (BTC) development, the alleged pay structure could threaten Blockstream’s sustainability. Cashbleed explains that these salaries are
“quickly depleting Blockstream’s Bitcoin reserves.”
Meanwhile, other users defending the Bitcoin development company claim that there is no evidence about the claims that Cashbleed is currently making.
Cobra is a recognized player in the crypto space and has been giving crypto-related comments for a very long period of time. However, he had periods in which he supported Bitcoin and other periods in which he supported Bitcoin Cash.