Bitmain, the giant producer of mining hardware which claims to have three-quarters of the global market of machines that mine bitcoin, has seen the return of Jihan Wu return in charge of the company.
The company filed for an IPO in Hong Kong earlier this year after a collapse of the bitcoin price with the aim of raising $3 billion. The IPO expired, but the company has regained strength after bitcoin bounced back.
On Monday Wu has returned to oust Micree Ketuan Zhan and took his place as CEO. Reports say that he did this without the shareholder’s consent.
#BitmainDrama episode 6
1. Jihan turned Bitmian HQ upside down while Micree was in Shenzhen
2. Investors didn’t know. NO shareholders consent
3. ONLY after the coup, Jihan started to talk with investors on how to negotiate with Micree
IT’S A COUP 😳😳😳
— Dovey 以德服人 Wan 🗝 🦖 (@DoveyWan) October 30, 2019
“Wu is Bitmain’s visionary founder and one of the giants of China blockchain. We’ll have to see if it works out, but this is a Steve Jobs coming back to save Apple situation,” said Matthew Graham, CEO of Sino Global Capital, in an interview for Financial Times.
Wu confirmed his return sending an email to employees threating them if they continued to have contact or take any instructions from Ketuan Zhan according to the Caixin, a local media outlet.
“Bitmain staff must no longer take any instructions from Ketuan Zhan or participate in any meeting organized by Zhan. Depending on the circumstances, Bitmain will consider terminating the employment contracts of anyone violating” the order, Wu wrote. Wu in the email sent to the employees.
The return of Juhan Wu coincides with the comments of Chinas President Xi Jiping supporting blockchain, the bitcoin underlying technology and encouraging research and developments in the sector.
Bitmain has launched a giant mining facility in texas some days ago and today news comes from Russia that aims to get 20% of the total mining market share. Bitcoin miners who are natural sellers seem to be mega bullish on bitcoin and it seems that the race to mine the digital gold has started.
Bitmain secretly filed for an IPO in the United States to raise between $300 and $500 million and the sponsor is the Deutsche bank, while another competitor, Canaan also filed an IPO in the U.S. to raise $400 million.
It is unclear if the new developments reorganizing the company will have a negative impact on the IPO.
Jihan Wu’s return at the top of Bitmain may return the company focus on Bitcoin Cash (BCH) which he was a supporter, time ago, but it could also put the company in trouble with Beijing’s recent blockchain narrative on the verge of the launch of Chinas national digital currency.