Bitmain Addresses Cash Flow Woes, Pays Delayed September Salaries
China-based Bitcoin (BTC) mining machine manufacturer Bitmain has resolved a recent salary delay issue by finally paying its employees for the month of September.
This move comes after Bitmain issued an internal notice on October 3, informing its staff of the delay in salary payments for that month due to apparent cash flow challenges, crypto news outlet The Block reported on Monday, citing Chinese media reports.
According to the report, Bitmain claimed in a notice to employees that the reason for the delayed payment was that its operating cash flow had not met expectations.
“Given the current state, especially with our mining progress not matching our standards, the executive management team has chosen to pause partial September wage payments,” the internal notice reportedly stated.
It added:
“We anticipate resuming these after the Oct. 7 holiday, contingent on prevailing circumstances. It’s imperative for supervisors and team members to work towards achieving our objectives.”
The employee notice was also reportedly shared on the Chinese social networking app Miamai, but was later deleted by the author.
On social media platform X, the China-based crypto journalist Colin Wu confirmed the reports that Bitmain has withheld part of its employees’ pay, although he noted that the delay only affected performance bonuses for “some people.”
“[…] the basic salary has been released normally on Sept. 30,” he added.
On the afternoon of October 7, Bitmain has repaid September wages, and stated that it only did not pay the performance salary of some people. It has also been repaid, and the basic salary has been released normally on September 30.
— Wu Blockchain (@WuBlockchain) October 8, 2023
Bitmain has not issued an official statement on the matter.
Bitmain recently launched its latest Antminer S21 Bitcoin mining machine at the World Digital Mining Summit and announced plans to invest $54 million in the bankrupt Bitcoin mining firm Core Scientific.
With the currently low Bitcoin spot prices, however, both mining profitability and the price manufacturers can charge for mining machines has come under pressure, contributing to the tough situation Bitmain has found itself in.
