Jihan Wu, co-founder of Chinese mining company Bitmain, today officially announced his resignation as CEO after a lengthy dispute with co-founder Mikri Zhang.
Wu posted an encrypted message on Twitter, the transcript of which is quoted by The Block.
Regarding the settlement between Bitmain’s two co-founders
Resilio Sync key: BEHPKSVC4IHNZ7YXP2K5TAVZYVYUAO57E
— Jihan Wu (@JihanWu) January 26, 2021
According to him, the conflict with Zhang was “finally” ended in a “peaceful and constructive” manner. As part of the agreement, Zhang bought out almost half of Wu and the group of founders’ shares in Bitmain for $ 600 million. Wu, for his part, refused to fight for the position of CEO and chairman of Bitmain.
“To carry out the share buyback, Mikri borrowed $ 400 million from Bitmain and committed to raising another $ 200 million from outside,” Wu said.
He also noted that, as of January 24, Bitmain had $ 327 million in fiat reserves, “which was twice the requirement of preferred shareholders to close the agreement.”
Earlier in the media there were reports that Bitmain plans to separate the mining division, including the cloud one, from its main business. This information was also confirmed by Wu today.
“As part of the agreement, Bitmain has opened a new page for the tremendous opportunity before it. As a co-founder of Bitmain, I have enjoyed a 2,815 day journey, working for the company with tremendous help and support from many clients, colleagues, friends and investors. I sincerely bless Bitmain under Mikri’s leadership, ”added Wu.
Wu returned to his position as CEO of Bitmain in October 2019, taking advantage of Zhang’s absence. Since then, in the course of the proceedings between the two co-founders, the company has experienced re-registration of management rights, the takeover of offices, delays in the supply of equipment and other events that negatively affected its business and led to a decrease in its share in the mining market.
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