Bitmain Power Struggle: Truce is Over & Fight for Control Resumes; Bitcoin Miners Could Suffer
The struggle between the co-founder of bitcoin’s biggest miner manufacturer is not looking to end anytime soon. It hasn't even been two weeks, and they are back at it.
The fight restarted when Bitmain co-founder Micree Zhan or Zhan Keutan attempted to redirect customer payments to a new bank account in a Wechat post at midnight. Dovey Wan, founding partner at Primitive Crypto tweeted,
“This marks the DEATH of Jihan in the Bitmain power struggle IMO: Bitmain just announced it will change the miner sales payment bank account & wiring info into a company Micree serving as legal representative. Micree now financially takes over Bitmain’s core business.”
It may not be a death blow to Jihan yet, but sure seems like a hard blow to the bitcoin miners who are awaiting their big orders.
The infighting between the co-founders could interrupt the product deliveries as it affects the shipments and supply chain. While some are reluctant to buy bulk orders, it is not stopping others from buying machines from Bitmain.
Last week, Core Scientific announced that the hedge fund Horizon Kinetics extended its partnership with the US-based blockchain hosting provider and upgraded its crypto service to Bitmain Antminer S19 and S19 Pro models.
Recently, Core Scientific purchased 17,000 of the latest generation crypto miners from Bitmain.
On Monday, Hive Blockchain technologies also announced that it had ordered 200 Bitmain Antminer S17e 60 terahash per second (TH/s) SHA 256 mining machines to scale up its mining power at its bitcoin mining operation in Quebec.
With the cost for the S17e machines approximately US$950 per unit, the purchase was just under US$0.2 million, and the company is anticipating delivery in July, but that’s to be seen. F2Pool noted,
“The slowdown in hashrate growth may continue, as many of the large hardware orders reported recently won't deliver until late in the summer.”
So far, both the co-founders are claiming to be the company’s real CEO. While Zhan controls the Shenzhen headquarter and factory Wu has the bank accounts and support of the board.
The rivals did reach an agreement to resume deliveries less than two weeks ago. On June 23, the company even published an article to reassure its customers that they have resolved the issue only to delete it within a few hours.
It hasn't been 24 hours to Zhan’s document with changed sales information, (including the bank account for payments, after-sale service website, and e-mail address) that another official Bitmain WeChat account associated with Wu revoked the document stating it contained false information.
In the new document also posted on the website, citing “abnormal conditions,” Zu said “criminals” are trying to impose Bitmain representations.
It looks like Wu is here to fight, and customers will also have to pay the price.