Business Cryptocurrency

Jihan Wu May Lose His Post At Bitmain Ahead of Company IPO


Miсree Zhan, the co-founder of the largest manufacturer of mining hardware Bitmain, intends to recover a lost position as the company’s CEO. The specialist published this information on his WeChat account. One of the first to draw attention to the news was Blockstream Strategic Director Samson Mow.

The specialist described the situation in his microblog, accompanying the post with the hashtag #Bitmaindrama.

Recall, last week, one of the Bitmain co-founders Jihan Wu in a bulk mail informed all company’s employees that Miсree Zhan was fired his position and holds no role at the company.

According to Miсree Zhan, the decision on his removal was passed while he was away on a business trip. The specialist said he was not aware of the preparation of the change of staff. The suspended co-founder of Bitmain believes that the problem also lies in the fact that in the course of his work he did not think about the legal component of the issue. At the moment, he is ready to submit a case to court.

Commentators on Twitter were surprised that Miсree Zhan earlier trusted Jihan Wu. According to the specialist, he intends to recover his position at Bitmain as soon as possible.

“Bitmain is our child. I will fight for him to the end, using legal weapons for this. I will not allow those who want to conspire against Bitmain to succeed. If someone wants war, he will get it,” he said.

Bitmain Has Applied For An IPO In USA

During the change of staff, Jihan Wu fill the position of CEO and legal representative of the company again, having removed Miсree Zhan from his posts. Note, the changes occurred against the background of the Bitmain preparation for the IPO.

However, at the end of October, the company’s team filed an application for an initial public offer to the US Securities and Exchange Commission (SEC). Information about this appeared a day later the Jihan Wu recover at Bitmain.

At the same time, the amount that the mining giant expects to attract during a public offering is not indicated, but perhaps this amount will be at least $ 300 million. This figure is significantly less than that announced during a previous attempt by Bitmain to gain public status. Recall that in September last year, the company filed an IPO on the HKEX. The media wrote that the company planned to raise from $ 3 to $ 18 billion.

Bitmain never received approval from the HKEX committee – its application expired in March 2019. Probably, HKEX was afraid that due to market instability, mining companies might cease their activities in the next two to three years. At that time, in addition to Bitmain, two more manufacturers of mining hardware, Ebang, and Canaan, tried to get public status.

Note, the documents that Bitmain provided to HKEX when applying for an IPO indicated that Zhan owns 60% of the company, while Wu owns only 30%. It is not known for certain why Bitmain changed the ownership structure, but this is probably because its closest competitor, Canaan, applied for an IPO in the United States.

Initial offering prospectus has been published on the SEC website, according to which Canaan Creative intends to be listed on the NASDAQ under the ticker CAN. At the same time, the company plans to attract about $ 400 million. Credit Suisse, Citigroup, and Galaxy Digital may become underwriters of the company.

Disclaimer: Our writers invest in cryptocurrencies and it is possible the author of this article has investment in any of the digital currencies discussed. Some times author's presented information may be laced with opinions. Treat articles as mere information and not as financial advice.

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About the author

Victoria Tiebienieva

Victoria Tiebienieva is an Europe based cryptocurrency writer with over 5 years writing experience in the cryptocurrency space.

Victoria has written numerous articles for popular cryptocurrency websites across Europe and beyond. She has spoken about cryptocurrency in notable media houses across her country.


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