The largest manufacturer of mining equipment, Bitmain, partially did not pay salaries to all employees in September. This was reported by journalist Colin Wu.
Exclusive: Bitmain, the largest Bitcoin mining machine manufacturer, issued a notice on October 3 that since the company’s operating cash flow has not yet turned positive in September, it has decided to suspend the payment of part of the salary of all employees in September. … pic.twitter.com/B4h4sWvQQS
— Wu Blockchain (@WuBlockchain) October 8, 2023
In an internal notice, the company cited that it did not turn cash flow positive during the month.
As of October 7, the firm said it had paid off most of its debt. According to Bitmain, only “some people” did not receive the full payout.
At the end of September, the company held the World Digital Mining Summit conference in Hong Kong and released a new flagship for bitcoin mining, Antminer S21, the reporter recalled.
During the event, the manufacturer entered into an agreement to invest in Core Scientific to supply 27,000 units of Antminer S19j XP. The American mining company will pay for the shipment of equipment for $23.1 million in cash and in common shares for $53.9 million.
In October, it became known that Iris Energy would purchase 7,000 Antminer S21 installations from Bitmain for $19.6 million. The contract price of miners in terms of hashrate turned out to be lower than the market price, according to the Hashrate Index.
Let us recall that in August, Bitmain offered buyers of S19j XP a protective mechanism that provides financial compensation for the fall in Bitcoin prices.
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