Bitmain, the prominent cryptocurrency mining company based in China, has set its sights on the Aleo blockchain, aiming to bolster its operations with cutting-edge mining machinery, allowing users to engage in Aleo coin mining.
This strategic move by Bitmain follows a period of financial turmoil, with reports of delayed staff salaries and penalties incurred due to outstanding tax payments. Bitmain is now gearing up to unveil its new Antminer for the Aleo blockchain, although the exact timeline for this launch remains undisclosed.
Aleo, a blockchain project known for its zero-knowledge capabilities, promises users a trifecta of benefits: decentralization, scalability, and enhanced privacy. This endeavor is just one of Bitmain’s recent expansion efforts, as they previously made a significant investment in Core Scientific, a company that was facing bankruptcy. In September, Bitmain injected a substantial $53.9 million into Core Scientific, underscoring their commitment to industry growth.
Despite these grand expansion initiatives, Bitmain is grappling with financial constraints. In April, the company was slapped with a hefty $3.5 million fine in China for unpaid taxes. While this fine may not deal a crippling blow to Bitmain’s operations, it has been reported that the company implemented partial salary reductions for its employees in September, as documented by the Chinese reporter Wu Blockchain.
“Bitmain issued a notice [saying] that since the company’s operating cash flow has not yet turned positive in September, it has decided to suspend the payment of part of the salary of all employees. Some internal employees confirmed the authenticity of the notice.”
Last week, Wu Blockchain said Bitmain fired four employees for “illegal publication of the company’s announcement on salary release.”