$ 600 million deal: who will run bitmain?
bitcoin (btc) mining giant bitmain has solved a months-long problem with hundreds of millions of dollars in deals. bitmain co-founder micree zhan will receive $ 600 million in shares from fellow co-founder jihan wu.
bitmain, the giant name of the cryptocurrency industry, may be close to solving the management problem it is experiencing in itself. according to 8btc, micree zhan will take over the $ 600 million bitmain stake, which is owned by jihan wu and his team, who co-founded the company in 2013. bitmain, known for the s9, s19 devices it produces, is expected to take a new path after this agreement.
wu jihan expected to leave bitmain
micree zhan and jihan wu began to have a disagreement at the end of 2018, and some changes were made to jihan wu’s position at bitmain. the two partners were unable to decide who would be in charge of the company’s core operations for a period of time, such as a year.
the problem will be solved with a new $ 600 million deal, wu said. the company btc.com and bit deer will be left to jihan wu’s administration. jihan will also be responsible for the company’s facilities outside china. the value of these projects, which will be left to jihan wu and his team, is believed to be worth $ 90 million.
micree zhan will be responsible for bitmain’s mining equipment (miners), artificial intelligence projects, and mine pools. zhan will also carry out bitmain’s activities in china.
wu’s team to be awarded $ 600 million
bitmain shareholders are scheduled to meet on december 28. at this meeting, micree zhan and his team will give wu jihan and his team $ 600 million and take over the shares in bitmain. micree zhan hopes the company will be listed on the us stock exchange no later than december 31, 2022, once this transaction is completed. for that, bitmain needs a valuation of at least $ 5.5 billion.
what will bitmain do next?
micree zhan will use the company’s cash reserves to give wu and his team $ 600 million. bitmain is therefore expected to have financial problems for some time and follow a more aggressive marketing strategy compared to normal.
it is not known what jihan wu will do after leaving his post in bitmain. jihan may be able to return to matrixport, set up his own investment fund or start a new company from scratch, wu said.