Bitcoin ASIC manufacturer Bitmain has temporarily halted the payment of salaries to its employees, according to recent reports. The company has also eliminated bonuses and incentives for its staff, and it has not paid the salaries owed from the previous month. Furthermore, employees are facing a 50% reduction in their base salaries.

Bitmain, founded in Beijing, China in 2013, was once a dominant player in the Bitcoin mining ASIC market, with an estimated 70% market share at its peak. The company’s Antminer ASIC series was known for its industry-leading hash rate computations for mining Bitcoin.

The decision to suspend salary payments reportedly stems from Bitmain’s struggle to achieve a positive cash flow in September, particularly in the sales of new ASICs. A message attributed to Bitmain indicates that the situation will be reassessed after October 7.

In August, Bitcoin miner Hive made a significant purchase of 2,000 Bitmain S19 XP ASIC miners for immediate use in its mining operations. These miners were priced at $4,653 each on Bitmain’s platform. Hive expects that, once integrated, its mining rigs will generate $80 per megawatt hour in revenue, encompassing both old and non-Bitmain models.

In 2021, Bitmain’s co-founder Jihan Wu settled a year-long ownership dispute with co-founder Micree Zhan. As part of the agreement, Wu stepped down as chairman and CEO of Bitmain and sold his ownership stake to Zhan for $600 million. At that time, Bitmain had plans for an initial public offering (IPO) with a valuation of $5 billion, which are believed to have been postponed due to the ongoing bear market.

This situation raises concerns about the financial stability of Bitmain, a once-prominent player in the cryptocurrency mining industry, as it grapples with cash flow issues and delayed employee payments