Bitmain’s Co-Founder Jihan Wu Steps Down In Bid To Settle Longstanding Power Struggles
The leadership disputes within Bitmain, the world’s biggest mining firm, have finally been resolved. One of Bitmain’s co-founder, Jihan Wu, is set to resign as the company’s CEO as part of the settlement. The settlement means that Micree Zhan will now regain control of the mining giant. Bitmain co-founder Jihan Wu said in a statement on Tuesday,
“I have resigned from the CEO and Chairman [positions at] Bitmain as of today, the disagreement between Micree and myself, the two co-founders of Bitmain, has been finally settled in an amicable and, more importantly, a constructive manner.”
To operationalize the settlement agreement and the leadership changes, Bitmain’s subsidiaries have embarked on filing legal materials to effect changes in their boards and legal representatives.
Zhan bought approximately half of the firm’s shares for about $600 million from a holding company known as Bitsource. Bitsource is believed to be a code name made up of the founding shareholders consisting of Jihan. According to the press statement, Zhan finished the takeover by obtaining a loan of $400,000 from Bitmain as well as $200 million from different fundraising activities outside the Bitsource group.
Following his resignation, Jihan is expected to become the head of Bitdeer, an offshoot of Bitmain with several mining farms in Norway and the US. Jihan will become Bitdeer's chair while the CEO will be Matt Kong. The settlement agreement also states that Antpool will become an independent company and be in the hands of Micree.
Jihan also explained that the settlement would allow the streamlining of Bitmain’s business model, paving the way for the company to seek an initial public offering. In the past, Bitmain has fruitlessly tried to go public.
The agreement also notes that Bitmain will have a new board consisting of five members. Zhan is expected to appoint three, while Jihan will appoint two. Already, Jihan has appointed Jianchun Liu, Bitmain’s chief financial officer, and Xiang Zhu, a top designer in the company.