Bitcoin Mining Billionaire Ousts Co-Founder
In this article (5)
A power struggle at the world’s largest crypto mining start-up has resulted in the surprise ouster of one of its co-founders.
Beijing-based Bitmain Technologies has fired co-founder and executive director Micree Zhan Ketuan, according to an internal memo sent to staff on Tuesday, which was seen by CoinDesk.
His role will be taken over by Jihan Wu, who founded the firm with Zhan six years ago, and is now chairman of the board. Wu is Bitmain’s head of business, while Zhan led the company’s chip designing team. The pair were previously co-CEOs, but were replaced by Wang Haichao earlier this year.
Bitmain’s co-founder, chairman, legal representative and executive director Jihan Wu has decided to dissolve all roles of Ketuan Zhan, effective immediately, the memo sent by Wu, headlined Important Notice said. Wu also warned staff not to take any instructions from Zhan or take part in meetings with him, threatening dismissal to those who violate the notice.
Bitmain is a major manufacturer of bitcoin mining equipment, and the company grew along with the crypto-mining boom. The falling price of bitcoin resulted in a cash crunch and layoffs for the company.
The firm was valued at $15 billion in a private funding round in 2018. In September 2018, the firm filed for an IPO in Hong Kong, in an attempt to raise $3 billion, but was unsuccessful.
According to the IPO prospectus, Zhan was a major shareholder of Bitmain’s holding company, owning 36 percent, while Wu owned 20 percent.
Questions & Answers
Q.What roles did Micree Zhan Ketuan hold at Bitmain before his ouster?
What roles did Micree Zhan Ketuan hold at Bitmain before his ouster?
Micree Zhan Ketuan was a co-founder and executive director of Bitmain, and he led the company’s chip designing team. He also previously served as co-CEO with Jihan Wu.
Q.What is Jihan Wu's current position at Bitmain after the changes?
What is Jihan Wu's current position at Bitmain after the changes?
Jihan Wu is now the chairman of the board, the company's legal representative, and its executive director. He also holds the position of Bitmain's head of business.
Q.Why did Bitmain experience a cash crunch and layoffs recently?
Why did Bitmain experience a cash crunch and layoffs recently?
The company faced a cash crunch and had layoffs due to the falling price of bitcoin. This impacted their business as a major manufacturer of bitcoin mining equipment.
Q.What was the ownership structure between the co-founders according to the IPO prospectus?
What was the ownership structure between the co-founders according to the IPO prospectus?
According to the IPO prospectus, Micree Zhan was a major shareholder with 36 percent of Bitmain’s holding company. Jihan Wu owned 20 percent of the company.