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Bitmain co-founder offers to buy shares worth $ 4 million

June 24, 2020

Bitmain’s power struggle goes beyond Micree Ketuan Zhan, one of the co-founders of the cryptocurrency mining giant and the largest shareholder, made an offer to buy shares controlled by his colleague and co-founded Jihan Wu and others for $ 4 billion.

According to a letter to the Chinese press Jinse on June 21 Zhan says he currently owns 36% of the company’s shares Parent company in the Cayman Islands that Bitmain Hong Kong owns and controls Bitmain’s Beijing offices. His current shares give him 59.6% of the voting rights.

The letter says that Zhan is ready to buy Wus sharesas well as shares from outside investors, the pool of employee options and three unidentified people for $ 4 billion.

The struggle for control continues

Bitmain co-founder offers to buy shares worth $ 4 millionBitmain co-founder offers to buy shares worth $ 4 million

Bitmain’s co-founder was already its largest shareholder, as Wu reportedly forced him to leave the company in October 2019in an apparent attempt to control what Zhan described in the letter as an “illegal attack.”

After Zhan was fired, the mining giant went on the offensive, publicly declare that he has no right to act as Bitmain’s legal representative or issue warnings and instructions to company employees. There have also been reports of legal action against Zhan.

Zhan retaliated in some way, Initiation of two lawsuits against the various Bitmain units to regain their position. In the letter, he accused Wu of spreading rumors, sending a group to steal a physical copy of his business license and hide the company’s assets.

Allegedly Zhan violently took over the company’s Beijing office in May with a security team, although this office is still under the control of Bitmain’s parent company Cayman Islands, which is managed by Wu.

Zhan urged Wu to return to the negotiating table and rely on the rule of law instead of resorting to media battles.

Manufacturing was affected

In the middle of this power struggle The company had problems with the mining machinery it manufactured, including reported failures among the Antminter T17 miners. Although Bitmain’s new Antminer T19 was released on June 1, the same chips were used in previous models.

This project could be related to Wu’s discontinuation of the chip supply at the Bitmain factory in Shenzhen, which is said to be under the control of Zhan’s relatives.

Company valuation

The cryptocurrency mining machinery manufacturer cost nearly $ 12 billion in August 2019 before this battle for control affected Bitmain’s leadership, manufacturing, and reporting.

Bitmain told Cointelegraph in May that Things could improve by 2020. The company earned more than $ 300 million from January to April and regained part of the market. It opened four mining facilities, even in the midst of the global pandemic.