China-based Bitcoin (BTC) mining machine manufacturer Bitmain has successfully resolved the recent salary delay issue that affected its employees. After notifying its staff about the delay in salary payments for the month of September due to cash flow challenges, Bitmain has now made the necessary payments, according to reports from Chinese media.
Reason for Salary Delay
Bitmain stated in an internal notice that the delay in payment was a result of the company’s operating cash flow not meeting expectations. The notice mentioned that the executive management team had decided to pause partial September wage payments as a result of the current state, particularly with the mining progress not meeting the company’s standards.
“Given the current state, especially with our mining progress not matching our standards, the executive management team has chosen to pause partial September wage payments,” the internal notice stated.
However, the notice was promptly removed from the Chinese social networking app Miamai by its author.
Confirmation from Crypto Journalist
Chinese crypto journalist Colin Wu confirmed the reports about Bitmain withholding part of its employees’ pay. However, he clarified that the delay only affected performance bonuses for some individuals, and the basic salary was released as per schedule on September 30.
“[…] the basic salary has been released normally on Sept. 30,” Wu mentioned.
Bitmain has not yet released an official statement regarding the salary delay issue.
In other news, Bitmain recently introduced its latest Antminer S21 Bitcoin mining machine at the World Digital Mining Summit and announced plans to invest $54 million in the bankrupt Bitcoin mining firm Core Scientific. However, due to the current low Bitcoin spot prices, both mining profitability and the price manufacturers can charge for mining machines have been under pressure, ultimately contributing to the challenging situation that Bitmain finds itself in.
