The Chinese company Bitmain, which makes crypto mining equipment, is apparently facing a nearly $4 million fine for unpaid taxes in Beijing. As required by Chinese legislation overseeing tax collection, Bitmain failed to pay income taxes, according to a report by the local news outlet Sina Finance. With reference to Qichacha, China’s data repository for private and public enterprises, the Beijing Municipal Office of the State Administration of Taxation penalized the business roughly 25 million, or $3.63 million.
For breaking China’s tax regulations on employee income, including wages, bonuses, allowances, labor dividends, and other relevant items, Bitmain has been fined. According to reports, the business has dealt with this exact government before and had problems relating to tax-related infractions. Currently, Bitmain owes $2.42 million ($16.65 million) in unpaid personal income tax.
Since its launch in 2013, Bitmain has had regulatory hurdles with China. Following the government’s imposition of a crypto ban in September of that year, the firm was purportedly compelled to cease operations in China, marking a momentous change of events. After top-tier rig costs had fallen by around 75% since April, Bitmain halted selling new equipment in June of that year. According to reports, delaying sales may help miners depart the sector by enabling them to sell their equipment for higher prices, while also helping Bitmain if the future price of new equipment rises as a result of the diminished supply.
At the end of 2022, Bitmain said that their most recent Antminer device had been completely sold out “in just 27 seconds.” Even as Ethereum engineers prepared for the blockchain’s switch to proof-of-stake (PoS), the business announced earlier last year that it will begin selling its newest Ethereum (ETH) mining machine, AntMiner E9. Over the last year, owners of mining operations have also reported their purchase agreements with Bitmain.
Bitcoin miner CleanSpark revealed that it has paid $144.9 million for 45,000 brand-new Antminer S19 XP mining rigs. The manufacturer anticipates having all units available for delivery by the end of September, and if installed, they will raise the company’s current hashrate by 95%.