Bitmain Co-founders Now Fighting Over the Bitcoin Mining Machines’ Shipment
After the halving last month, the bitcoin hash rate is recovering while China’s rainy season is helping with the cost.
On one side, miners are ramping up their efforts with Hut 8 looking to raise $5.6 million to upgrade its BlockBox miners and the second-largest bitcoin mining pool partnering with BlockFi which will provide it capital.
On the other side, the management drama at Bitmain is halting a Shenzhen subsidiary of the company from shipping bitcoin miners to its clients, as per BlockBeats. The subsidiary is owned by Beijing-based Bitmain which is responsible for manufacturing and packaging its bitcoin miners for delivery and pick-ups.
Just at the beginning of this month, Bitmain announced the release of Antminer T19, a cheaper bitcoin mining machine.
The reports of halting the machine deliveries came after company co-founder Micree Zhan Ketuan, who was once exiled, returned to the company in early June.
His rival Jihan Wu is now taking legal action against Zhan’s orders as per the statement issued on June 9.
Zhan, who was ousted by Wu last October earlier this month, sent out a letter to Bitmain employees to announce his return to the company. He called for staffers to return to the office and talked about leading the company to an IPO as soon as the company's market cap pushes to over $50 billion in the next three to five years.
According to BlockBeats’ video footage, Zhan forcefully entered the Beijing office of Bitmain with his group of private guards.
Bitmain is already facing stiff competition from MicroBT and these latest developments could further reduce the mining giant’s already waning dominance in the bitcoin mining market.
Meanwhile, Bitcoin miners dominance in China, based on hashrate distribution, has fallen from 75.6% in September 2019 to 65.08% by the end of April, as per Cambridge University’s Centre for Alternative Finance.