Bitmain, the world’s largest manufacturer of hardware for digital currency mining using ASIC technology has decided to close its development center in Israel and its 23 employees will be laid off, "Globes" learned this morning.
The Ra’anana based development center in Israel which was set up three years ago is set to shut down this week because the company needs to reorganize its activities in line with the current market trends.
Gadi Glikberg, the Israeli branch manager will also be leaving the company.
Glikberg admitted to the local staff "The crypto market has been in turmoil for the last few months, forcing Bitmain to examine the various activities in the global company and to refocus activities according to the current situation."
Bitmain has been suffering the impact of the crypto market crash as the demand for Bitcoin mining equipment continues to dwindle with several miners abandoning the mining of Bitcoin.
The development center which was set up in 2016 has been working on developing blockchain technology, the Connect BTC mining pool, and artificial intelligence technology for the Sophon project in Israel.
The news comes as a major surprise considering Bitmain were looking at tripling their Israeli staff contingent just six months ago.
Perhaps the mining giant is falling on hard times following the increased decline in cryptocurrency prices which is greatly affecting mining profitability.