Bitmain pulls out of Israel as it feels the bite of the crypto market…
The continued pressure on cryptocurrency prices is biting crypto miners hard, and few appear to be taking the brunt of that as harshly as Bitmain. Comfortably one of the biggest players in the cryptocurrency mining market, the company is having to scale down its operations in certain areas to cope with the decline in the market.
As such, we now learn that the company’s development centre, that it set up in Ra’anana in Israel, is shutting up shop. It opened up just over two years ago, and was employing 23 people. Those people have now been laid off, and the boss of the company’s Israeli operations, Gadi Glikberg, is also on his way.
The centre had been mining cryptocurrencies since 2016, and was working on blockchain projects as well. But the state of the cryptocurrency bear market, that’s seen the price of Bitcoin fall by nearly half in a month, has taken its toll. As quoted by Globes Israel, Glikberg told staff that “the crypto market has undergone a shake-up in the past few months, which has forced Bitmain to examine its various activities around the globe and to refocus its business in accordance with the current situation”.
The news comes against a backdrop of rumours that Bitmain has recorded a loss of nine figures over the past year, news that the company hasn’t confirmed at this stage. But it’s clear it’s been heavily hit heavily by the market conditions of the last year, and its Israeli operation is the first to bear the brunt of that.