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Bitmain is currently undergoing a major power struggle within its hierarchy as reports exploded recently that major shareholder and co-founder Micree Zhan has been ousted out of the company. Details have surfaced confirming that the major reason behind the immense fallout was due to Zhan’s desire to push his artificial intelligence projects forward.
In a transcript obtained by CoinDesk, it was revealed that Zhan and fellow co-founder and major shareholder Jihan Wu have been bumping horns since 2015. It was only in December 2018, however, that the arguments took a downward spiral when Zhan refused to agree about the proposed layoff that Wu was pushing for.
That layoff eventually occurred as the majority of management agree to Wu’s decision. The reason behind the layoff was due to several factors including the crypto winter, over hiring, and unnecessary spending of company funds.
Zhan’s adamant pursuit of AI tech
With the company able to weather the prolonged bear market, Zhan’s idea to pursue his AI initiatives was met with major resistance from Wu. Wu argued that they still need to recover from the losses they’ve incurred and the company can’t afford to dip its toes on speculative investments. But Zhan was adamant in hiring 300 fresh new graduates for his AI endeavors.
Indeed, one day before Wu dropped the email instructing employees to not speak with Zhan or they’ll be terminated, the ousted co-founder was in Shenzhen promoting Bitmain’s AI pursuit. Upon Zhan’s return, he was already barred from entering Bitmain’s premises.
Zhan gearing up to take Bitmain to court
Now, Zhan has reportedly gathered lawyers to launch a lawsuit against Bitmain, a weight that threatens the shaky foundations of the company. Bitmain has been losing a lot of money – not just during the crypto winter – but due to competitors as well. Even though Bitcoin has bounced back from its $3,000 lows, the company couldn’t capitalize on it due to several reasons.
What’s more, it’s still unclear how exactly did Wu strip Zhan out of his position since he has a 36 percent stake in the company. The next thing to watch out now is the upcoming lawsuit that Zhan is about to file and how this new development will affect Bitmain moving forward.
Also, the crypto verse is observing Bitmain’s attempt at going public again. The company has reportedly submitted an IPO filing in the U.S. amidst this power struggle and it would be interesting to see how this plays out given how everything has unfolded so far.
