Bitmain’s co-founder, Jihan Wu, has been bought out of the company by his co-founder, Micree Zhan, for $600M. The agreement settled an ugly year-long distance among the founders.
It has been reported that Sequoia China mediated the settlement and that shareholders approved it last December 28. It states that Zhan will collateralize his shares for $600M to purchase Wu’s share.
Following the settlement, Wu will leave Bitmain but still have full control over sizeable international mining farms, including BTC.com and bitdeer. The other services, including mining rigs, artificial intelligence, antpool, and domestic mining pools, belong to Zhan.
The settlement re-established Zhan, whom Wu ousted from the company in November 2019.
When Wu took control of the steering wheel, the two engaged in many legal -and literal- fights. The year-long crypto TV drama cost the business millions of dollars when Zhan halted Bitmain mining rigs’ shipment in punishment for Wu’s coup.
The largest beneficiary of the settlement will be Bitmain‘s investors; Zhan promised that under his rule, Bitmain would complete its IPO by the end of 2022. It will be a handsome exit for investors like Sequoia.
Many have contemplated why Wu left the company, which he had built with sweat and blood since 2013. Some have suggested that he return to Matrixport, a company he founded in 2018 that provides financial services to Bitcoin miners. Others have suggested that he will be a crypto venture capitalist.
Things are looking good for Bitmain as Bitcoin‘s price surges to new highs every other day. But it is unclear if Bitmain will be able to maintain its primacy if the Bitcoin market crashes.