Bitmain is closing down its Israeli development centre, Bitmaintech Israel, this week and laying off its 23 employees who used to work at the facility.
The development centre was started back in 2016 and was set up in Ra’anana under Gadi Glikber who is also the VP at Bitmain. Glikber will also leave the company. The decision to close the center was made due to the sharp fall in cryptocurrency prices and a general decline in the digital currency market.
The development comes a week after it was first reported that Bitmain is likely to incur $740 million or more Q3, 2018 loss. Glikberg told Bitmain’s Israeli employees about the development:
“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 company’s Israeli facility was engaged in the development of blockchain and AI technology. As a VP at Bitmain, Glikber was also responsible for the sales and marketing.
Last month, Jihan Wu, co-founder of Bitmain, was demoted by the company’s board of directors. He can no longer participate in business decision-making.
All these developments raise the question about company’s future plans and its ability to list shares at Hong Kong Stock Exchange (HKEX), given the current market situation. The company is also recording decline in sales revenue from its mining equipment business and cryptocurrency mining profits.
This news was provided by Crypto News India, our partnering media source in India.