Crypto News

Bitmain CEO announces departure in the most crypto way

“I have resigned from the CEO and Chairman of Bitmain as of today,” said Jihan Wu.

The power struggle between Bitmain co-founders Micree Zhan and Jihan Wu appears to be at an end. In a tweet on January 26, Wu announced his decision to step down from the company.

The now former CEO and Chairman of Bitmain sent out an encrypted farewell message to his followers, announcing that the long-standing disagreement between ousted co-founder Zhan and himself had been settled in an “amicable” and “constructive” manner.

“I have resigned from the CEO and Chairman of Bitmain as of today,” said Wu, after working at the firm for almost eight years.

As part of the agreement, Zhan has purchased roughly half of Bitmain’s shares from Wu and others for $600 million. The Bitmain co-founder reportedly obtained a $400 million loan from the crypto mining giant and “committed to raise another [$200 million] from outside of the group.”

According to Wu, Bitmain had $327 million in fiat cash holdings as of Monday, “twice higher than what is required by the preferred shareholders in order to close this settlement.” He reported Bitmain’s financials as “strong and healthy” and unlikely to be affected by the loan to Zhan.

Wu will not be leaving the crypto industry entirely, however. He noted as part of the settlement with Zhan, the firm’s contract cloud mining service Bitdeer will be “spun off from Bitmain” with Wu becoming chairman. Zhan will lead the crypto mining group Antpool as soon as it’s “spun off into an independent company.”

Today’s settlement comes after a long struggle between the two crypto mining giants. Zhan and Wu reportedly reached a $600 million settlement in December with Sequoia Capital acting as the middle regulator after Zhan initially offered to buy Wu’s and others’ Bitmain shares for $4 billion in June.

The corporate feud seemingly began with Wu forcing Zhan out of Bitmain in October 2019. At the time, Zhan was the firm’s biggest shareholder — he later referred to Wu’s actions as an “illegal power seizure.”

After Zhan was ousted, Bitmain went on the offensive, publicly stating he had no right to act as a legal representative of the mining giant or issue notices and instructions to company employees. There were also reports of legal action against Zhan.

The Bitmain exec struck back in a few ways before today’s final settlement. He launched two lawsuits against Bitmain’s various entities in an attempt to regain his position. He accused Wu of spreading rumors, sending a group to steal a physical copy of his business license, and hiding company assets. Zhan also allegedly took over the company’s Beijing office in May with a team of guards.

Bitmain was worth nearly $12 billion in August 2019 before this fight for control impacted leadership, manufacturing, and media coverage of the crypto mining giant. Wu’s message indicates that Bitmain still plans to “go for an IPO,” though the firm’s original attempt at an initial public offering filed in September 2018 was unsuccessful.

How useful was this post?

Click on a star to rate it!

As you found this post useful...

Follow us on social media!

Disclaimer: The opinions expressed within this article are the personal opinions of the author. The facts and opinions appearing in the article do not reflect the views of CoinChapter and CoinChapter does not assume any responsibility or liability for the same.

(This story has not been edited by CoinChapter staff and is auto-generated from a syndicated feed.)
0 Comments
Inline Feedbacks
View all comments
CoinChapter

Founded in 2015, Coinchapter.com has become one of the leading resources for the crypto asset community. Created by a small group of cryptocurrency enthusiasts, Coinchapter.com was built to provide new members of the crypto asset community with unbiased listings of cryptocurrency exchanges and retail options that would allow them to buy the crypto assets that they wanted, how they wanted and at the price they wanted.

Related Crypto News

NYDIG Raises $200 Million From Key Strategic Partners
New York Digital Investment Groups announced that it has raised $200 million from its strategic partners. This includes its...
Mark Cuban Predicts Dogecoin Will ‘Definitely’ Hit $1
Billionaire tech investor and Dallas Mavericks owner Mark Cuban continues to provide a boost to Dogecoin. A week ago...
Ethereum 2.0 Staking Protocol Stakewise Raises $2 Million
Ethereum 2.0 DeFi protocol Stakewise announced a successful $2 million private fundraise ahead of its public launch. The protocol...
Analyst Sees Bitcoin Price Hitting $55,000-56,000; Here’s Why
Bitcoin could reach anywhere between $55,000 and $56,000 in the coming sessions, says Jonny Moe.
Bitcoin Price Surges After U.S. Senate Passes Stimulus Bill
The price of Bitcoin surged 4% to $51,000 on Sunday after the United States Senate passed the expected $1.9...
Kraken CEO: SEC’s Case Against Ripple Could Hurt Crypto Exchanges
Kraken CEO and co-founder Jesse Powell is concerned that the U.S. Securities and Exchange Commission’s (SEC) case against Ripple...

Featured Crypto News

NYDIG Raises $200 Million From Key Strategic Partners
New York Digital Investment Groups announced that it has raised $200 million from its strategic partners. This includes its...
Mark Cuban Predicts Dogecoin Will ‘Definitely’ Hit $1
Billionaire tech investor and Dallas Mavericks owner Mark Cuban continues to provide a boost to Dogecoin. A week ago...
Ethereum 2.0 Staking Protocol Stakewise Raises $2 Million
Ethereum 2.0 DeFi protocol Stakewise announced a successful $2 million private fundraise ahead of its public launch. The protocol...
Analyst Sees Bitcoin Price Hitting $55,000-56,000; Here’s Why
Bitcoin could reach anywhere between $55,000 and $56,000 in the coming sessions, says Jonny Moe.
Bitcoin Price Surges After U.S. Senate Passes Stimulus Bill
The price of Bitcoin surged 4% to $51,000 on Sunday after the United States Senate passed the expected $1.9...
Kraken CEO: SEC’s Case Against Ripple Could Hurt Crypto Exchanges
Kraken CEO and co-founder Jesse Powell is concerned that the U.S. Securities and Exchange Commission’s (SEC) case against Ripple...