on the crypto
There is a new twist in the struggle for power within Bitmain: Co-founder Jihan Wu has regained the status of legal representative of the mining machine giant.
Latest events
The update in China's business registration on September 14 shows that Wu is again the legal representative and executive director of Beijing Bitmain Technology, the operating arm of Bitmain. Micree Zhan, the rival co-founder who was ousted last October by Wu but regained control earlier this year, is no longer the legal representative and executive director but remains a general manager of the company.
The role of the legal representative of a company in China confers broad powers to act on behalf of a company and usually also holds the official seal of the company, a crucial element for signing corporate decisions in force.
In an announcement posted on Sept. 15 via Bitmain's AntMiner brand WeChat account, Wu reiterated the status update and said that Zhan's respect for the company "remains unchanged."
End of the power struggle in Bitmain
The latest events suggest that Bitmain's struggle for internal power may have come to an end, although the lawsuit taking place in the Cayman Islands - where Bitmain's parent holding company resides - is awaiting a final judgment.
Wu added in the announcement that Bitmain's management now aims to come up with sustainable solutions to solve all kinds of problems caused to employees. Investors and customers due to the war between the two co-founders.
“Since 2020, the management feud has damaged Bitmain's market share and its brand image. We have lost customers and employees have been forced to take sides, ”it is written in the Bitmain post.
History
During a "coup" in October last year, Wu removed Zhan as Bitmain's president, executive director and legal representative despite Zhan being Bitmain's largest shareholder. Wu said Zhan's leadership in 2019 caused serious problems, including a significant drop in the market share of Bitmain's bitcoin mining machines.
Zhan filed a lawsuit in the Cayman Islands in December to assess the legitimacy of Wu's actions. The event quickly turned into a year-long power struggle. Earlier this year, Zhan regained his legal representative status after winning local government favor and forcibly entering Bitmain's Beijing office.
Soon after, Bitmain's manufacturing business of bitcoin mining equipment was essentially split in two with each party trying to establish their own sales weapons and industry supply chains.
As a result, Bitmain employees were forced to take sides and the deadlock caused significant delays in shipments to Bitmain's customers, many of whom had to turn to rival manufacturers such as Shenzhen-based MicroBT.
