Bitmain Reportedly Cleans Up Board Of Directors With IPO Around The Corner
Chinese-based Bitcoin mining company Bitmain has reportedly reshuffled its board as it prepares to launch its initial public offering (IPO) – the biggest in the burgeoning crypto industry.
CEO Wu loses voting rights in a significant shakeup
In what is turning out to be a significant shakeup at the company, local media outlet 8btc has reported that four directors out of the total six resigned last week.
As per information that is available at the local government, the news outlet says that among those to step down was Bitmain’s CEO, Jihan Wu.
Previously, Wu served as the executive director, but the changes see him take on a new role as the board’s supervisor. Apparently, by taking up the new role, Wu no longer has voting rights or decision-making capacity for the company.
Zhan Ketuan replaces Wu as the company’s new executive director and manager.
Others reported to have resigned from the board include directors Zhao Yifeng, Zhou Feng and Ge Yuesheng and Hu Yishuo, who served on the board of directors.
A critical moment for Bitmain
The reshuffle is said to have been effected on November 7, according to media reports. As surprising as it appears, what has not come out is the exact reason that led to the shakeup.
Even then, the timing could be critical for the Beijing-based leading bitcoin mining as well as for the entire cryptocurrency industry.
On November 6, Bitmain recently released the Antminer S15 and the T15, the company’s next-gen Bitcoin miners that feature its flagship 7nm BM1391 ASIC chips that unveiled in September. This then is a critical period in the company’s plot to continue dominance over the cryptocurrency mining industry.
Perhaps more importantly, Bitmain is awaiting its IPO, planned for launch on the Hong Kong Stock Exchange (HKEX).
The IPO will be the first and largest ever for a crypto-based company, and will in a big way vindicate Bitmain’s commercial success that has seen it hit a market valuation of $15 billion.
Bitmain’s reshuffle comes in the wake of a BitMEX Research that revealed that the mining company might have run into huge losses due to dubious business decisions and ill-advised investments in Bitcoin Cash (BCH).
Bitmain also reportedly overestimated the demand for its Antminers, a result of which is the piling up of mining hardware that leaves the firm holding thousands of devices whose value has rapidly depreciated.
It is possible that these decisions may have impacted on the company’s desire to see changes, especially ahead of its upcoming IPO.
Also important is that with these changes, the spotlight turns to Bitmain’s co-founder Micree Zhan, a mostly low-profile mastermind of the company’s technical aspects. Jihan Wu, on the other hand, has put most of the effort on blockchain and market development.
Pertinently, however, is the question of what role Bitmain’s new board of directors will have on the BCH hard fork that is scheduled for November 15.
Jihan Wu, who no longer holds voting rights on the board, supports the Bitcoin ABC version of the hard-fork. The other version is supported by Bitcoin SV, which has the backing of CoinGeek, the largest mining pool for Bitcoin Cash.