Rumors swirl of potential settlement in Bitmain’s civil war

Reports from China claimed the multi-year power struggle between Bitmain‘s two co-founders could soon be coming to an end. 

Blockchain journalist Colin Wu posted recently that Bitmain co-founders Jihan Wu and Micree Zhan reportedly reached a settlement that ends their messy long-running feud around who will control the blockchain giant. According to Wu’s local sources, Zhan will emerge triumphant to continue as head of the organization, running things his way. 

As part of the supposed settlement, Jihan Wu will exit Bitmain, taking with him the BTC.com mining pool, Bit Deer, and Bitmain’s overseas mining centers. He will also receive a golden parachute of $600 million in exit compensation. 

That leaves Micree Zhan in control over the hardware manufacturing enterprise, along with the Antpool mining pool and Bitmain’s China-based mining farms. The agreement also sees Zhan left in charge of the artificial intelligence (AI) division. 

Zhan will reportedly mortgage his shares temporarily to raise the $600 million needed to buy out Wu’s stake in the company. Colin Wu’s sources purport that prestigious Silicon Valley firm Sequoia Capital is acting as the middle mediator in the negotiations.

The online reports say the deal to be ratified at the upcoming shareholders’ meeting slated for Dec. 28, and the parties have not ruled out additional modifications to the deal’s structure. 

Part of the arrangement includes a pledge by Zhan that Bitmain will complete an initial public offering (IPO) in the United States before the end of 2022. During the IPO, the minimum valuation of the qualified listings will be US$5.5 billion, and the listing financing cannot be less than $500 million. 

Both men have supposedly promised to stop the infighting and arrange for a smooth and proper transition. Colin Wu points to a December 25th shareholder transfer of Jihan Wu’s sales company in Chongqing as a sign that Bitmain split is pushing ahead. Someone transferred the major shareholder of the entity from Singapore Bitmain to Beijing Bitmain. 

Neither Jihan Wu nor Micree Zhan has issued a public statement confirming these reports at press time. The online rumors do not shed light on the implications a settlement will have on the pending court actions. The blockchain community has have waited long enough for Bitmain to get its act together. Hopefully, the rumors are real, and relief is indeed insight. 

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