The struggle for Bitmain’s control has taken a different turn, with Jihan Wu regaining the position of executive director and legal representative of this Chinese Bitcoin mining rig manufacturer. According to the latest update on China’s business registration record, Macree Zhan will no longer serve in the above capacities but remains a general manager in the company.
This turn of events comes as an upper hand to Wu’s side of the company, given the powers embedded within the legal representative and executive director role in Chinese-domiciled entities. Wu is now the one in control of Bitmain’s seal hence broad powers to act on behalf of the company as well as sign strategic decisions into effect.
Bitmain’s Power Brawl
With cryptocurrencies on the rise, Bitmain pivoted as one of the leading mining rigs manufacturers, but the firm’s internal brawls since late 2019 have cost the business a fortune. The real trouble began when Wu ousted Zhan towards the end of 2019; a move that Zhan later termed to be illegal and took the battle to the courts. Since then, Bitmain’s operations have been at the mercies of the two opposing camps.
Fast forward, Zhan was able to regain control of Bitmain’s Beijing offices in June 2020 and proposed to buy Wu’s shares at a valuation of $4 billion. His helm at the firm, however, seems to have been cut short with the latest developments. Nonetheless, Wu has maintained that Bitmain’s respect for Zhan remains unchanged in a recent WeChat post on the Bitmain AntMiner brand account.
Bitmain’s Woes Might Be Far from Over!
While the latest changes may have signaled calm waters for Bitmain’s operations, it is still too early to predict whether the firm’s internal power struggles will persist. For starters, a lawsuit between the two divides is still pending in the Cayman Islands, where Bitmain’s holding entity is domiciled. This regulatory uncertainty has ultimately threatened the firm’s operational side as well; Wu, however, noted that they are looking to find long-term solutions for the troubles caused to Bitmain stakeholders.