Bitcoin mining: Bitmain could be divided after internal dispute
One of the most shocking fights in the world of Bitcoin mining, 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 parallel sales and shipping departments.
The struggle for control of the company has been going on for a long time. However, it exploded last year when Wu decided to expel Zhan. The latter has been fighting to regain the company and recently won the favour of the authorities.
The dispute between the two former partners has led to serious supply problems for the manufacturer. Bitmain has been ceding control in the sales market to the competition from the powerful MicroBT.
Bitcoin’s mining equipment manufacturer, Bitmain, could be divided into two
Following Wu’s expulsion of Zhan last year, the problems became more radical within the leading mining ASIC manufacturer Bitcoin. In response, Zhan took over the company’s Beijing headquarters, with the support of the mainland authorities.
In the midst of these conflicts, Wu, trying to close the way for Zhan, registered a new firm in Shenzhen called Guiji Yanghang, which is subsidized by another supplier called Guiyuan Dalu, also on Wu’s side.
All of Wu’s plans were thwarted by Zhan’s struggle for control. The latter is now planning to create a new supply and manufacturing chain for Antminer equipment.
The June shipments of Bitcoin mining equipment in Bitmain’s S19 series were again delayed due to internal fighting.
June shipments of Bitcoin S19 series mining equipment were again delayed due to internal fighting, as this could be split.
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Loss of control in the market
Bitcoin’s mining ASIC manufacturer, Bitmain, could lose the competition to its rivals. The serious internal conflict of the Asian manufacturer is opening the doors for another big company to take Bitmain’s place.
This is the already mentioned MicroBT, which has developed the powerful M30S+ equipment, which mines with a 100T hash. At the same time, they have an efficiency of 30.00 j/TH, which puts them at the level of the Antminers of the most recent S19 series.
Bitmain’s clientele, affected by delays in shipments, which are the result of internal disputes, has turned its eyes to MicroBT. Since 2017, this company has gone from 6% to 30% this year. On the other hand, Bitmain dropped from almost 70% to 40% of sales in the international market.
Efficiency is the key in the ASIC market
The new battlefield will create more confusion
The new phase of the disputes between the two shareholders of Bitcoin Loophole mining company, Bitmain, could increase the levels of confusion among customers. The impact on the manufacturer’s position on the market would be catastrophic because of the threat of competition.
The confusion for global buyers could be that they do not know from whom to buy the equipment. In addition, this may be compounded by the uncertainty that their orders will be delayed or boycotted by one or other of the factions fighting for power in Bitmain.
Another important fact is that, last Friday, Wu sent a letter to the company’s employees. In it he accused Zhan of internal economic problems with the staff, alluding to the fact that the staff would have caused the loss of several hundred million dollars.
He also said that the shipment of Bitcoin mining equipment would have been affected by the disruptions in Shenzhen caused by Zhen’s arrival.