Jihan Wu, the former CEO of Bitmain, one of the most important companies in the cryptocurrency mining space, could be leaving the company. According to Dovey Wan, founding partner of Primitive Ventures, revealed on Twitter that Jihan Wu might be cutting ties with Bitmain.
Wan explains that according to various sources, Wu would start a new firm on his own. As she mentioned, the new company “is more like a spin out of Bitmain” that could be focusing around Bitcoin Cash (BCH) and decentralized finance – also known as Defi.
Jihan Wu is leaving Bitmain, starting a new company 🤯🤯🤯 multiple non-official sources said so …
according to various sources, the new company is more like a spin out of Bitmain (so far not sure of the equity ownership structure), with primary focus around BCH and Defi
— Dovey Wan 🦖 (@DoveyWan) February 25, 2019
Although there is nothing confirmed, the company has been experiencing some difficult times during the last year. The bear market in the crypto space seems to have affected the company in a very particular way. Moreover, Jihan Wu has supported Bitcoin Cash ABC back on November 15 when Bitcoin SV (BSV) split from the BCH chain.
Between November and December 2018, several miners left the market due to the fact that Bitcoin’s price dropped under $6,000 and it was not profitable to mine the most popular cryptocurrency in the market anymore. This could have also affect Bitmain to some degree.
The company has also closed two of the offices that it had around the world. These two offices were located in Israel and in the Netherlands.
In a recent financial report that was provided to the Hong Kong Stock Exchange (HKEx), bitmain lost $500 million during the third quarter of 2018. Moreover, some time ago, he stepped down as the CEO of the company after disagreeing on multiple issues with Micree Zhan, the founder of the ASIC mining company.
Now is time to wait and see whether these rumours turn out to be real and confirmed. Bitmain has also been trying to move towards artificial intelligence (AI) but it seems that it did not provide good results for their business.