Internal Struggle at the Biggest Bitcoin Mining Equipment Manufacturer Persists

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The Board of Directors of leading Bitcoin mining firm, Bitmain today threatened ousted co-founder, Micree Zhan with legal action if he continues meddling with the company’s affairs.In what has been a long-running saga between the two co-founders jostling for control of the business, the latest announcement goes some way in determining Jihan Wu’s dominance on the matter.However, as evidenced by numerous occasions in the past, it’s unlikely that Zhan will take this lying down.Source: twitter.comCrypto Winter Stops Bitcoin ASICs Manufacturer in its TracksBitmain was founded in 2013 when Micree Zhan and Jihan Wu went into business together. Wu has a background in finance, while Zhan brought technical know-how to the partnership.By 2018, Bitmain had become the world’s largest manufacturer of application-specific integrated circuit (ASIC) chips for Bitcoin mining.The company also controls BTC.com and Antpool mining pools. However, the majority of Bitmain’s income, 94% at the time, came from the design and manufacturer and ASIC equipment.Nonetheless, during this peak period, revenue was healthy at $2.8 billion for the first six months of 2018, earning the firm $743 million in net profit. This was quite the jump from the same period in the previous year, where profit was less than $100 million.However, crypto winter and the subsequent decline in Bitcoin price really hit hard during the second half of 2018. Not only was this a factor in the firm’s failed public offering on the Hong Kong Stock Exchange, but it also led to a scaling back of operations, including the firing of 3000 staff members and closure of offices in Isreal and the Netherlands.Rumors that they lost $500 million during this downturn period were denied by the firm. A Bitmain spokesperson said:“The rumors are not true. We will strictly follow the requirements of the relevant laws and regulations of the listing and make announcements in due course.”

Via: https://www.newsbtc.com

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