Bitmain Abandons Amsterdam Operations, Analyst Says Implosion of Mining Giant has Little Impact on Crypto Miners
In the past two months, Bitmain is shrinking at a rapid pace. The Beijing-based Bitcoin mining giant has undergone a series of mass layoffs, shut down its entire office in Tel Aviv and halted its mining operations in Texas. This time, they decided to close another overseas office in Amsterdam as part of its ongoing business adjustment.
According to a statement released on January 14, the decision to close their Amsterdam operation has been made and the shutting down process is underway but the accurate timeline of the closure has not been set yet.
The firm said in the statement that: “As we build a long-term, sustainable and scalable business, we are making adjustments to our staff and operations. This includes the decision to close our Amsterdam and Israel offices.”
In early December, Bitmain confirmed the closure of its Israeli office. On Thursday last week, the mining firm was reportedly halted its operations in Texas.
This time, the Amsterdam layoff statement was quite brief, it seems that the company would be solely focused on what lies ahead.
The firm further added that: “We are really focusing on things that are core to our mission and not things that are auxiliary. We will continue to hire the best talent from a diverse range of backgrounds.”
The year-long crashing in the crypto market has made mining manufacturer suffered a lot. The infamous Bitcoin Cash hash war took place in November even add insult to injury to Bitmain that caused great losses of millions of dollars.
However, some cryptocurrency analyst believes that the implosion of mining giants would not have much impact on crypto space.
Eric Conner, the founder of Eth Founder tweeted that:
“Honestly, I wish we’d stop worrying about miners so much. They provide a service to what Ethereum users decide they want to run. I don’t think they should have a say in governance decisions. In 2 years we won’t need them. Let’s quit wasting so much time worrying about them.”
As Ethereum announced it would switch its proof-of-work (PoW) consensus algorithm to proof-of-stake (PoS), which may replace miners with validators. The PoS protocol expects to remove expensive ASIC machines used by mining giants like Bitmain. As thus, to miners mining PoS cryptocurrencies, it does not matter if the demonstrated mining firms would survive in this round of bear market.