Analyst Believes Bitmain’s Mining Operations Shutdown Will Not Affect the Industry

Bitmain, one of the largest crypto mining companies in the market has been affected by the bear trend in the industry. According to some reports, Bitmain could be shutting down its mining operations. This has raised concerns among several enthusiasts in the crypto space wondering which could be the effects of this decision on the industry. However, there is a recognized analyst that believes that this decision is not necessarily a big deal.

Although the company is one of the market leaders, it has experienced difficult times during the last half of 2018. The market fell and Bitmain was affected by it as well. For example, the company has closed its office in Israel a few weeks ago. Furthermore, there are some reports that say that the firm could soon cut its employees and the staff that it has.

According to the researcher and analyst Alex Krüger, the rumours related to Bitmain shutting down its operations might not be as negative as many other individuals believe. He wrote on Twitter that Bitmain is an ASIC chips designer and a mining hardware seller. For him, Bitmain shutting down its mining business is not a big deal.

As reported by Bitmain on its IPO prospectus, the operating pools that it has amounted 1.5% of its revenue. At the same time, mining activities generated 3.3% of the revenue of the company. However, 20% of its employees work in the mining sector, which could be something negative for them if the bitcoin mining firm decides to fire them.

According to Dovey Wan, the founding partner of Primitive Capital commented that Jihan Wy and Micree Zhan could step down from their co-CEO positions at the company. The information was released a few days ago by OriginalPlanet Daily. According to Dovey, the successor could be Haichao Wang, who currently works as the director of product engineering.

A few days ago, the Japanese technology giant GMO announced in a press release that it is quitting the crypto mining hardware business. According to it, during a meeting of the Board of Directors, the company took the decision to leave the mining market.

[FREE] Get Our Best Crypto Trading, Mining & Investing Hacks:

*Action Required* Enter Your Email To Get Insight For Trending Coin News & Reviews

I will never give away, trade or sell your email address. You can unsubscribe at any time.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

1 × 2 =