One of the world’s leading mining hardware producers, China-based Bitmain has allegedly suspended all mining operations in Texas, more specifically Rockdale when a public radio station shared the blockchain news with the rest of the world.
Rockdale is located in Milam Country and the county judge Steve Young; issued a statement that shows all of the Bitmain employees except two had been laid off thus operations have been suspended. Only two engineers and the HR director have been spared.
According to Young’s statement, the company told him that it will bring the operations down rather than shutting it down and it’s the only reasons why it has so little employees now. Young stated:
“They have spent millions thus far to renovate the buildings. I’m told there are 7,000 or 8,000 servers out there already.”
The county judge also pointed out the crash of the bitcoin price as a reason for Bitmain’s plans. A spokesman from the company said:
“The right-sized team at Rockdale now has the expertise to re-start the project at small scale anytime. Bitmain would like to ramp up the site at a slower pace and scale based on market conditions.”
Young also says that Bitmain was committed to hiring local people and even insisted on paying the school district taxes but there is still a question hovering on the 10-year tax break on county taxes on personal property.
Bitmain in August 2018 had a plan of building a $500 million blockchain data center but also hoped to build a mining facility in Texas in order to expand into the US market. Now, the company is firing employees that were working on different projects.
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