Cryptocurrency

Mining Bitcoin: Bitmain could be divided

One of the fights more shocking in the world of mining Bitcoin, it could cause the division of Bitmain. According to reports, the power struggle between the two major shareholders Wu Jihan and Micree Zhan Ketuan, would lead the company to create departments of sales and shipments to parallel.

The struggle for control of the company starts from a long time ago. However, the same broke out last year when Wu decided to expel Zhan. The second has kept on fighting to recover the company, and, most recently, won the favor of the authorities.

The dispute between the two former partners, has resulted in serious problems of supply of the manufacturer. Bitmain comes to giving up control in the market of sales against the competition of the powerful MicroBT.

Mining equipment manufacturer Bitcoin, Bitmain, could be divided into two

After the expulsion of Zhan by Wu in the past year, the problems were radicalized inside the most important manufacturer of equipment ASIC for mining Bitcoin. As a response, Zhan seized the headquarters of the company in Beijing, with the support of the authorities of the mainland of China.

In the midst of these conflicts, Wu, trying to close the road to Zhan, registered a new company in Shenzhen called Guiji Yanghang, which is subsidized from another provider called Guiyuan Dalu, also on the side of Wu.

All of these plans of Wu is disrupted by the struggle for the control by Zhan. The second is now, who plans to create a new supply chain, and manufacturing teams Antminer.

Shipments for the month of June, teams of mining Bitcoin of the series S19 of Bitmain, they were again delayed due to the internal struggle, as this could be broken down.

Loss of control in the market

The equipment manufacturer ASIC for mining Bitcoin, Bitmain, could lose the competition against its rivals. The severe internal conflict of the manufacturer in asian, is opening the doors for the other to take the place of Bitmain.

This is the already mentioned MicroBT, which has developed the powerful computers M30S+, which undermine with a hash of 100T. At the same time, they have an efficiency of 30.00 j/TH, which puts them at the height of the Antminers of the most recent series S19.

The clientele of Bitmain, affected by delays in shipments, which are a result of the domestic dispute, has turned the eyes towards MicroBT. This company, from the 2017 went on to take a 6% to 30% this year. For its part, Bitmain-down from almost 70% to 40% of sales in the international market.

The new field of battle will create more confusion

The new phase of disputes between the two shareholders of the company of mining Bitcoin, Bitmain, could increase the levels of confusion among customers. The implications for the position of the manufacturer in the market, would be catastrophic due to the stalking of the competition.

The confusion for buyers overall, might be not knowing who to buy the equipment. In addition, to this we can add the uncertainty of that their orders are delayed or boycotted by one or other of the factions that fought for power in Bitmain.

Another important fact is that, last Friday, Wu sent a letter to the employees of the company. In the same accused Zhan of domestic economic problems with the staff, alluding that this would have caused the loss of several hundreds of millions of dollars.

In addition, in the same ensures that the shipment of equipment of mining Bitcoin, they would have been affected by the interruptions in Shenzhen caused by the arrival of Zhen.

Data to be taken into consideration

The July 16, 2018, Wu expelled Zhan of the directors of the company. For October of the same year, stripped of the control of the headquarters of the Beijing company.In June of 2020, Zhan returned to power and resumed control of the company’s headquarters in the chinese capital with the support of the authorities.In 2018, Bitmain earned more than $700 million dollars in profits and a market cap of 14.5 billion.Wu sent a letter to customers apologizing for the new delay of shipments scheduled for the month of June.The next phase of the dispute, might be the one who will have the ultimate control of the company.

What do you think, Bitmain could be divided? Let him know in the comments box.

Reliable sources

The information of this content has been taken from reliable sources which are detailed below:

1 – professional Management of content by the authors of CriptoTendencia.
2 – external Sources: CoinDesk.com, qixin.com and Coingeek.com.

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About the author

Belinda Carey

Belinda Carey

A finance girl by education, Belinda has been drawn to cryptocurrencies ever since Bitcoin first emerged in the 2009. Nearly a decade later, Belinda is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies.

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