- Bitmain could stop selling its equipment in China following the country’s crackdown
- Bitmain has recently overcome a civil war and seemed to be in a better position
- The company could also stop manufacturing equipment in China
Bitmain could stop selling equipment in China as the crackdown on the crypto mining industry in the country continues to take its toll. Tech website Gadgets 360 claims that “three people familiar with the matter” revealed to them that the mining equipment giant, which has dominated the field since its inception in 2013, could take the unprecedented step of ceasing sales to mainland China, such is the impact of the crypto mining ban that was handed down in May. The news, were it to be confirmed, would come hot on the heels of retail giant Alibaba taking crypto mining equipment off its virtual shelves, news that broke yesterday.
Bitmain Just Getting Back on Track
Bitmain has had a fairly torturous last couple of years, having been engaged in a civil war over its ownership that started in November 2019 and only ended in January this year, with Micree Zhan buying out Jihan Wu and taking full control. In the middle of this, the company filed an IPO with the Hong Kong Stock Exchange that was blown up when the HKSE changed its stance towards crypto related businesses. An IPO was then filed with the Securities and Exchange Commission, but this was allegedly pulled six months later after an investigation by the Department of Justice.
With the civil war finally over and Bitcoin going great guns in early 2021 everything looked rosy for Bitmain, but since the mining ban was reaffirmed in May the waters have become decidedly rocky once more. Chinese demand has, obviously, all but dried up, taking a huge chunk out of Bitmain’s customer base and leaving international customers as its bread and butter.
Production to Leave China Too?
According to the sources, not only is the company considering stopping Chinese sales but it is also considering shutting down production in the country, fearing that action may be taken against them by authorities, despite the manufacture of crypto mining equipment itself not being a crime. They could also be seeking to move closer to their new customers to make delivery easier, quicker, and cheaper.
Both of these outcomes would be huge news for the space and would reinforce just how much the sands of crypto are shifting.