According to crypto influencer Dovey Wan, the largest shareholder and co-f0under of Bitmain, Micree Zhan has been been ousted from the company. Jihan Wu has now taken over as the legal representative of Bitmain in China.
Bitmain Staff Prohibited From Taking Any Orders from Zhan
Crypto influencer Dovey Wan, in a string of tweets, revealed that Bitmain’s co-founder and largest shareholder with a 36.5% stake, has been ousted from the company and Jihan Wu, the other co-founder has taken over as the legal representative in China. Wu’s new position gives him “potentially unlimited liability” as per Wan. Wu is now legally accountable for all the operations of the company and he can be held personally liable for the debts of the company.
Wu sent emails to the company staff prohibiting them from taking any orders from Zhan or attending his meetings.
“Micree Zhan is dismissed from all operating positions from the company immediately. No one should take order from him or attend his meeting” – Dovey Wan’s Twitter handle
Zhan May Dump His BCH Holdings
Wan further revealed that Zhan was ousted in an “ugly way” and he may dump his 1.6 million BCH holding. It is known in the industry that Wu is a supporter of Bitcoin Cash. In 2018, Bitmain had even rolled out a project for BCH development, however, it reportedly fired all BCH developers in December 2018 in a wave of redundancies.
Jihan Wu getting greater control over Bitmain appears to have bode well for BCH. It is up 10% in the last 24 hours and is trading at $288.
Zhan Fired in a “Nonprofessional Manner”
Zhan’s firing was far from the way it is normally done. His email was deleted and he was barred from entering the company’s office by security. The staff in the HR department was replaced by Wu’s own people. According to Wan, it appears as if Zhan was forced out of the company, and his firing appears to be more like a political coup. It is to be noted that Zhan was Bitmain’s biggest shareholder and to fire him like that, Wu must have discussed the matter with other investors like Sequoia China.
According to Samson Mow, the CSO at Blockstream, the replacement of Zhan as legal representative was done without the approval of other shareholders as the Zhan still shows as a Manager in the Corporate Update. He also said that Wu may have rounded shareholders to oust Zhan.
According to Wan, Bitmain has responded to the media and said that all decisions made by Jihan Wu will be effective immediately, and that under his leadership, Bitmain will get back to its mission statement and become a world-class tech company. The message’s undertone was that during the leadership of Zhan, Bitmain had lost focus and become a mess.
It would be interesting to see how Zhan responds to it and it Wu will prove to be an effective leader.
Canaan Prepares For its US IPO
Canaan, the world’s second largest manufacturer of Bitcoin mining machines is preparing to conduct an initial public offering (IPO) in the US. The China-based company’s offering size is of a whopping US$400 million as per its filing with the US Securities and Exchange Commission. The company had also attempted a Hong Kong listing last year, but not followed up on its progress which resulted in its application lapsing in November 2018.
However, with a US-based IPO, Canaan has a big shot at overtaking Bitmain as the world’s top manufacturer of Bitcoin miners.
With Jihan Wu’s leadership at Bitmain, do you think that the company will regain its former glory and retain its top position among bitcoin miner manufacturers in the world? Let us know what you think in the comments below!