Jihan Wu: Bitmain was on the verge of bankruptcy

Posted 31 October, 2019

After returning to the post of CEO of the mining giant, Jihan Wu told how Bitmain was on the verge of bankruptcy due to incorrect decisions of top managers and conflicts in the leadership. According to him, the past head of Micree Ketuan Zhan made serious mistakes, so he was removed from control.

“Zhan escalated what should be a disagreement on an ordinary company business decision to the level of power struggle.” - explained to Wu.

He added that disagreements in management began back in 2015, and peaked at the end of 2018 when the company began staff reductions. According to Wu, this decision was approved by four partners, only Zhan opposed.

" The company spent unnecessary and hasty investment everywhere on research and development projects and hiring dozens and hundreds of people without a second thought. Everyone supported the layoffs.” - said the CEO of Bitmain.

Zhan demanded to appoint himself the sole leader and threatened to deprive the right to purchase shares of those who vote against him. The company's problems began to lead to the loss of partners and suppliers, and the market was at a minimum (the price of Bitcoin was approaching $3200).

“Suppliers calling us to push for clearing accounts payable. The Bank of Beijing already agreed to give us credit lines but that got cut the next day.”  - Wu said in the meeting.

Micree Ketuan Zhan was fired on October 29th. The Bitmain Board of Directors approved Jihan Wu as CEO. Employees were warned that no one could accept instructions from the former head of the company or attend his meetings.

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31 October, 2019 15:09

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