Bitmain Denies Rumors of Wu Being Ousted

 
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The world’s largest Bitcoin mining company, Bitmain, is denying reports that its co-CEO, Jihan Wu, has been ousted from the company’s board. The reports were widely circulated and come before the initial public offering (IPO) of Bitmain Technologies Holding Company on the Stock Exchange of Hong Kong (HKEX).

This is obviously problematic for a company that plans to raise at least $500 million in its IPO at a valuation of no less than $18 billion. This would make Bitmain easily the most valuable company in the cryptocurrency space, and worth over twice that of Coinbase.

Jihan Wu, co-founder of Bitmain

The rumors indicated that Wu had been removed from Bitmain’s senior management structure after several directors had resigned from Bitmain’s board. However, Nishant Sharma, the international marketing manager of Bitmain Technologies Limited, stated that Wu will continue as co-director of the board.

Sharma clarified: “As is standard listing practice, Bitmain is restructuring its board and group structure, to ensure it meets regulatory requirements on its road to IPO. This is to simplify the board structure to facilitate its management. There have been no board departures and co-founder Jihan Wu will continue to lead the company as co-chair, together with the co-chief executive officer, Micree Zhan.”

Bitmain mining hardware

There have been some questions surrounding Bitmain recently, as information has leaked that suggest it has not been profitable as previously thought. Specifically, a pre-IPO presentation has revealed that the company unloaded Bitcoin in order to stock up a significant amount of Bitcoin Cash.

Samson Mow, the CEO of Blockstream, a company that markets several cryptocurrency-related products and services, pointed out the implications in a tweet:

Mow continued to warn against investing in Bitmain in another tweet, stating: “The Bitmain IPO is incredibly risky for any investor to buy into.” He ended the tweet quite harshly, with the phrase: “Play stupid games, win stupid prizes.”