[Breaking] Chinese Crypto Media Outlet Says Bitmain’s Jihan Wu has Lost Executive Power with Board
Jihan Wu, the co-founder of Bitmain, one of the largest Bitcoin mining equipment manufacturers in the whole world, is reportedly no longer able to use executive power to decide the future of Bitmain. The original report was made by the Chinese media outlet Sanyan Blockchain today, November 13.
The original article use an unnamed source to affirm that the Bitmain lawyer, Tian Yangang, has affirmed that a redistribution of power among the executive board of the company has affected Wu, which has lost his position as the director of the company and is now a “supervisor”.
Now, Jihan Wu will lose his voting rights and his power to make executive changes will be greatly diminished, which means that the power of other people will be improved. The news comes after Bitmain was valued at $18 billion USD and had plans to launch a Initial Public Offering (IPO).
Despite the good news, though, there is a long controversy over the financial health of the company like the fact that the company has vast reserves of Bitcoin Cash (BCH), which is at the middle of a controversy right now. At the moment, Wu controls 20.25% of the stake of the Bitcoin mining giant company.
There is some speculation that the main reason why so much is changing is because of the upcoming IPO, so the investors are trying to get the company ready for it. This would coincide with some people having a crisis of faith in Bitmain’s co-founder as well.
Jihan Wu’s controversies related to mining like the fact that Antpool has stopped mining SegWit blocks despite losing revenue in doing so and his involvement in the Bitcoin Cash controversies have diminished the trust of the investors in the former executive director of Bitmain.
Ketuan Zhen, a fellow executive director of the company, has a 36% stake share in the company and, though he is considerably less famous than Jihan Wu, he is now far more powerful. So he is likely to get some control over the company.
The US-China trade war is also creating more pressure on the IPO, so there are many reasons for the shift in power.