Bitmain, the leading mining equipment manufacturer and now the world’s largest mining farm as well, is currently amidst an internal mess. The Altcoin Bitcoin Cash (BCH) saw a 10% rise on October 29 when the company’s co-founder Micree Ketuan Zhan was fired by Jihan Wu, the current chairman of the Bitmain.
It is however unclear what the actual reason is behind the move, but according to the translation from an email quoted by news outlet CoinDesk, Wu reportedly stated in the mail that “Bitmain’s co-founder, chairman, legal representative and executive director Jihan Wu has decided to dismiss all roles of Ketuan Zhan, effective immediately.”
Wu had supposedly warned those who continued to interact with Zhan:
“Any Bitmain staff shall no longer take any direction from Zhan, or participate in any meeting organized by Zhan. Bitmain may, based on the situation, consider terminating employment contracts of those who violate this note.”
Zhan, who is believed to be the biggest shareholder of Bitmain, with a 60% stake in the company according to a report from Coin Telegraph. According to the founding partner of cryptocurrency investment firm Primitive Crypto, Dovey Wan, Wu told the employees that he wanted to take control of Bitmain’s declining share of the bitcoin mining industry and improve it.
On the other hand, Bitmain has also discreetly filed an application for an Initial Public Offering (IPO) with the United States Securities and Exchange Commission (SEC). As per a report from Tencent News, the application is being sponsored by German Deutsche Bank. The total targeted amount to be raised is yet to be disclosed. Having already failed once in an attempt to file a $3 billion IPO at the Hong Kong Stock Exchange in September 2018, Bitmain has hired Zheng Hua, former Nasdaq representative of China to further reinforce their chances of success.
Canaan secretly files for IPO
Bitmain rival Canaan, also went public with their plans for an IPO this Monday. Canaan had also failed prior to this after the bitcoin crash of 2018. This time the filing shows that it is seeking to raise a placeholder figure of $400 million on the Nasdaq exchange. The company will supposedly be valued at $2 billion to $3 billion. The final amount to be raised is not yet disclosed.
Canaan reportedly filed the IPO in July, but the formal F-1 form wasn’t made public until now. Canaan mentioned in the filing that the net income for the year 2018 was $8.3 million on net revenue of $394 million, as the bitcoin price plunged in the second half of 2018 from above $6,000 to around $3,000. It reportedly underwent a loss of $16.7 million in the second half of last year.
The filing marks the third attempt for Canaan to go public and the second attempt for Bitmain. It is yet to been seen who will be savouring success.