The year isn’t ending good for major cryptocurrency mining giant for Bitmain. Beijing-based bitcoin mining firm is probably looking the resignation of its CEOs Jihan Wu and Micree Zhan, in line with Odaily, a Chinese media outlet ‘reported‘. The firm has not formally confirmed any of the media allegations yet. However sources within the organization have discovered that both Wu and Zhan are in conflict with one another over Bitmain’s dismissive financial performance in previous quarters. They did tell ‘8BTC‘:
“Thank you for your attention but we’ve no comment at this present time, please refer to the prospectus.”
As CCN reported earlier, Bitmain posted $400 Mln value of quarterly losses at a time once it was in the process of increasing its mining and blockchain development operations across the world. The firm had conjointly eyed a $12 Bln IPO spherical to make amendments for its lack of funds earlier this year, however Hong Kong regulators have reportedly turned it down citing lack of rules to control cryptocurrency-related products.
Bitmain’s Poor Performance
Odaily reported that Zhan eagerly took the blame of Bitmain’s poor performance over the recent months. He accepted that his management skills didn’t helped the firm much. While the firm did post $1.1 Bln in profits beneath his leadership following the crypto pump in 2017, the revenue started sporting off throughout the 2018’s crypto dump. It eventually led Bitmain to a situation where it found its mining equipments and services ‘undersold‘, very like its competitors that conjointly reported vast losses throughout the crypto crash this year.
Wu, on the another hand, supported Roger Ver’s Bitcoin Cash ABC principle’s throughout their infamous hash war with their forked cousin Bitcoin Cash SV. It’s out that Wu, who was wanting to adopt a wise contract protocol on the ABC blockchain, entertained large amounts of their mining pools’ computing power to the ABC camp to assist them mine blocks quicker than the SV blockchain. The ‘alliance‘ priced Bitmain lots of dollars.
Earlier in Nov., Bitmain had already confirmed that it had been restructuring its board prior its IPO. The choice led to the departure of the half of its board members with Wu retaining his billet and Zhan remaining on the board as the chief executive officer and manager of the firm.
Is This The End?
As the rumors regarding Wu and Zhan’s resignations gain momentum, it seems that Bitmain is already about to an implosion. The firm allegedly fired over half of its workers so as to be leaner. It conjointly closed down a ‘branch in Israel‘.
Samson Mow, CSO at Blockstream, conjointly claimed that the closing would result in the firing of almost 80 percent of the Bitmain workforce. Crypto capitalist Kyle Samani went ahead by predicting that Bitmain would eventually run out of cash and sell all its crypto holdings, warning Bitcoin Cash [BCH] and Litecoin [LTC] investors of the potential ‘impact‘.
Both Wu and Zhan remains in Bitmain as stakeholders. An officer with the surname ‘Chang’ can likely replace them for the CEO’s position.