Bitmain, the largest mining equipment manufacturer in the crypto industry, has been experiencing some financial difficulties lately. A lawyer for the company announced in the last hearing that the last year’s loss amounted to $ 60 million.
The confession came up in a lawsuit between Bitmain and her three former employees. Former employees accused the mining firm of failing to pay compensation and bonus packages. In addition, employees claimed that Bitmain earned $ 300 million in 2019 and could offer special bonuses of up to $ 11,000 to each worker in May of this year. A lawyer defending the company explained that Bitmain recorded terrible financial performances in 2018 and 2019, and the company was struggling to pay bonuses for workers with 13th month payments last year.
The lawyer pointed out that Bitmain lost about 400 million yuan ($ 60 million) in 2019. This, combined with a loss of about $ 500 million compared to Q3 and Q4 2018, indicates that the company is going through a serious financial difficulty. Despite losses in the second half of 2018, Bitmain managed to close the year with a profit of 450 million dollars. However, in 2019, things got worse, resulting in the company failing to meet its obligations to workers leaving their jobs.
Bitmain also faced significant difficulties in 2020. The company has gone through difficult times due to internal conflicts and the coronavirus outbreak. The first problem also affected its operation, as Bitmain had to delay shipments for its current Bitcoin mining device. In July, Bitmain confirmed that it will delay orders for Antminer mining equipment until October. It is unclear if the posts are currently taking place. There were some highlights during the year: Bitmain’s mining business signed a $ 17.7 million deal with Riot Blockchain for equipment delivery. Still, recent developments suggest that the mining giant’s financial problems are still ongoing.