In recent weeks, whispers of financial strain have surfaced around Bitmain, the world-renowned cryptocurrency mining hardware manufacturer once valued at over $10 billion. Reports from employees on the professional networking platform Maimai suggest that the company is facing serious cash flow challenges—so severe that it has delayed key components of staff compensation.
According to multiple verified employee accounts, Bitmain withheld the full performance-based pay for all employees in September 2025, while also cutting base salaries in half. There has been no clear timeline for when the withheld wages will be reimbursed, fueling anxiety across the workforce.
These claims were later substantiated by an internal notice from Bitmain’s Executive Management Team (EMT), titled “Notice on the Deferred Payment of Partial Salaries for September.” The document stated:
“As of September, the company’s operating cash flow has not turned positive. In particular, deployment progress of mining machines into mining farms has significantly underperformed. As a result, the EMT has decided to delay partial salary payments for all employees. A reassessment will be made after the October 7 holiday.”
The notice emphasized that both managers and staff must remain focused on fulfilling their core responsibilities despite financial headwinds.
Bitmain’s Rise and Challenges
Bitmain has long been a dominant force in the crypto mining ecosystem. Founded in 2013 by Wu Jihan and Zhan Ketuan, the company quickly became synonymous with high-efficiency ASIC miners under its Antminer brand. At its peak in 2018, Bitmain reported staggering figures:
- 2.56 million mining units sold in the first half of the year
- Nearly 95% of revenue from hardware sales
- Net profit of $743 million, an almost eightfold increase year-on-year
- Valuation between $12 billion and $15 billion
That same year, Bitmain filed for an IPO in Hong Kong, aiming to capitalize on its market dominance. However, the listing never materialized due to a combination of market volatility and internal turmoil.
Leadership Split and Strategic Divisions
One of the most damaging episodes in Bitmain’s history was the prolonged power struggle between co-founders Wu Jihan and Zhan Ketuan. This internal conflict culminated in a strategic split:
- Wu Jihan took control of Bitdeer, the cloud mining and overseas mining farm division (with operations in the U.S. and Norway), and now serves as its chairman.
- Zhan Ketuan retained leadership over the core Bitmain operations and Antpool, one of the largest Bitcoin mining pools.
In April 2025, Bitdeer completed a SPAC merger and began trading on the Nasdaq, marking a rare public-market success story for a spin-off of the original company. Meanwhile, Bitmain’s own path to public listing remains uncertain.
Industry-Wide Downturn Affects Hardware Giants
Bitmain’s struggles are not isolated. The broader cryptocurrency mining hardware sector has been under pressure due to prolonged bearish market conditions.
Recent financial disclosures from two other major Chinese mining firms highlight the sector-wide slowdown:
- Canaan Creative (NASDAQ: CAN): Reported $57.9 million in mining machine sales for Q2 2025, down 32.2% from Q1 and a steep 75.6% decline from $238 million in the same quarter last year.
- Ebang International (NASDAQ: EBON): Generated just $1.15 million in product revenue for the first half of 2025—a 95.2% drop compared to $25.06 million during the same period in 2024.
These numbers reflect shrinking demand for new mining equipment, driven by several interrelated factors.
Why Is the Mining Industry Struggling?
According to Zhang Xiaobing, Executive President at Kefangde Investment and a blockchain industry expert, “The downturn in Bitcoin mining is largely due to falling BTC prices combined with rising mining difficulty.”
As Bitcoin’s price remains volatile and below its all-time highs, miners face tighter profit margins. At the same time, network difficulty—the computational power required to mine new blocks—has steadily increased, making it harder and more expensive to earn rewards.
Key Pressures Facing Miners:
- Declining Bitcoin prices: Reduces revenue per mined block
- Rising electricity and hardware costs: Increases operational expenses
- Network congestion and competition: Smaller players are being squeezed out
- Regulatory scrutiny: Governments worldwide are tightening oversight on crypto mining
Fang Wei, Senior Researcher at OKX Intelligence Institute, elaborated:
“The mining industry is highly sensitive to market cycles. After Bitcoin peaked in 2021, we entered a prolonged correction phase. With higher difficulty and lower prices, many miners are operating at a loss. Only large-scale, efficient operations can survive.”
He also noted that regulatory pressure is growing—not just in China, but across North America and Europe—where energy consumption concerns are prompting stricter policies on data centers and mining farms.
Core Keywords
- Bitmain financial issues
- Bitcoin mining downturn
- Cryptocurrency hardware sales
- Mining difficulty increase
- Bitdeer Nasdaq listing
- Canaan Creative revenue drop
- Ebang International performance
- Crypto mining regulation
Frequently Asked Questions (FAQ)
Q: Is Bitmain going out of business?
A: There is no official indication that Bitmain is shutting down. However, delayed salary payments and stalled growth suggest significant financial stress. The company appears to be restructuring amid tough market conditions.
Q: Why did Bitmain delay employee salaries?
A: According to internal communications, Bitmain’s operating cash flow has not turned positive due to slower-than-expected deployment of mining machines into client facilities—indicating weak sales or delivery bottlenecks.
Q: How is Bitdeer different from Bitmain?
A: Following the leadership split, Bitdeer focuses on cloud mining services and international mining operations. It was spun off from Bitmain and went public via SPAC in April 2025.
Q: Are other mining companies facing similar issues?
A: Yes. Canaan Creative and Ebang International have both reported sharp declines in revenue due to weak demand for mining hardware amid falling Bitcoin prices and rising operational costs.
Q: What role does Bitcoin price play in mining profitability?
A: Bitcoin’s market price directly impacts how much revenue miners earn per block. When prices fall below the cost of electricity and maintenance, many miners halt operations or sell equipment at a loss.
Q: Could Bitmain still go public in the future?
A: While nothing is confirmed, the successful Nasdaq listing of Bitdeer may renew investor interest. However, any IPO would depend on improved financial performance and market recovery.
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Looking Ahead
While Bitmain remains a key player in the blockchain infrastructure space, its current challenges underscore the fragility of even well-established crypto ventures during prolonged downturns. The convergence of weak pricing, rising costs, regulatory pressure, and internal fragmentation has created a perfect storm.
Yet, history shows that Bitcoin cycles are inherently cyclical. As halving events reduce block rewards and supply pressure eases, prices often rebound—potentially revitalizing interest in mining hardware.
For now, all eyes are on whether Bitmain can stabilize operations, regain trust among employees and partners, and position itself for the next bull cycle. The road ahead won’t be easy—but for a company that once led the mining revolution, adaptation may be its strongest trait.