Citing Crypto Downturn, Bitmain Closes Israeli R&D Outpost

Chinese company Bitmain Technologies Ltd. is closing its Israeli research and development center, the company announced Monday. Bitmain, the world's largest bitcoin mining equipment manufacturer, opened its Israeli outpost in 2016. The company employed 23 people in the country, in an announcement published Monday.

The recent downturn in the cryptocurrencies market has forced Bitmain to reexamine its global operations, Israeli branch manager Gadi Glikber said in a message to employees. The company's forecasts regarding market and user base growth failed to pan out, necessitating the shutdown of the center, he said, adding that Bitmain will assist its employees to find new employment.

In August, Bitmain submitted a prospectus in preparation for listing on the Hong Kong Stock Exchange, after raising $400 million in a pre-IPO round in June. The filings revealed that Bitmain has experienced a consistent erosion in its profit margins in the last few years.