Bitmain Receives an Offer from Former Co-Founder

David Kemp

Bitmain is a privately owned firm. Its headquarters are located in China. Beijing has become the home for this company and allowed the business to flourish and grow. Users must have heard of ASIC chips that they can use for BTC mining and, thanks to the company, many can now involve in this sort of activity.

Analysts keep track of the latest news they receive from Bitmain – most reporters announce that the life inside the firm is full of events. The team is constantly developing new projects and doing plenty of research to make their products and services even more efficient. It seems that what the company is producing attracts thousands of customers all across the planet.

However, the crypto community oftentimes receives sensational news, and this time it’s related to the co-founders Zhan and Wu. Now, these two businessmen are trying to solve issues linked to the control and management of the corporation. Recently, Zhan sent a letter offering himself as the head of the company.

The struggle for power is going on. Right now, the largest shareholder of the firm is Zhan. He is also known as a crypto mining giant who took part in the foundation of Bitmain. According to the mass media outlets, he suggested purchasing shares belonging to Wu along with other participants. It’s a deal worth four billion USD. Jinse, one of the local news outlets, announced that Zhan says he at present owns thirty-six percent of the shares for the company that belongs to the brand and is based in the Cayman Islands. More than that, he is the person who controls the company’s offices in the capital city. Currently, what he owns allows him to have almost sixty percent of the entire voting power.

Fight for Power and Control

Power has always attracted business people. And this case is no exception. We can see how two strong leaders are fighting to get to the top. Zhan does not seem to be willing to give up on his ambitions. He is ready to purchase the shares that belong to Wu. No doubt, he is eager to buy them from outside investors. The negotiation would involve the employee option pool. Finally, there are another three individuals who wish to stay unknown to the public and have the company’s shares.

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Almost a year ago Wu forced Zhan out of the brand – the reason was his attempt to grab control. Zhan says that what Wu did was illegal and that his partner unfairly seized power. The ousted partner went to court and initiated two suits against the brand’s numerous entities. He was trying to regain control and stay in the same position. According to him, his business partner used to spread gossip and even attacked him to steal documents. He also believes that Wu is hiding firm assets.

Taking over the brand’s office in the capital was another event that attracted many reporters’ attention in May. This office is run by Wu and Zhan suggested returning to negotiations. The two businessmen rely on the legislation rather than the press.

The recent fight has indeed affected the company’s manufacturing. There have been plenty of issues with the equipment and the processes that are involved in its manufacturing. Many analysts are worried that the conflict may affect a great number of people involved in mining. The manufacturer is said to be worth approximately twelve billion USD a year ago. The corporation is proud of being capable of further growth and development – it has made more than three hundred USD between January and April this year. Additionally, the team has managed to launch four mining facilities when the COVID-19 was in full swing.