Jihan Wu, co-founder of Chinese mining giant Bitmain, announced his resignation as CEO of the company after lengthy litigation with Mikri Zhang.
In an encrypted letter that The Block transcribed, Jihan Wu said that the disagreement with Mikri Zhang was resolved in a “peaceful and constructive” way.
As part of the agreement, Zhang bought out almost half of Wu’s shares in Bitmain for $ 600 million. In turn, Jihan Wu resigned as head of the company.
“To carry out the purchase of shares, Mikri received a loan from Bitmain for $ 400 million and pledged to raise the remaining $ 200 million from external sources,” the letter said.
According to Wu, Bitmain had $ 327 million in fiat currency as of Jan.24, which is “twice what preference holders need to close the deal.”
“Bitmain has opened a new page, with tremendous opportunities before it. As a co-founder of Bitmain, I have enjoyed a 2815 day journey of working for the good of the company, receiving tremendous help and support from many users, colleagues, friends and investors. I sincerely bless Bitmain under Mikri, ”Wu wrote.
Regarding the Settlement Between Bitmain s Two Co Founders by ForkLog on Scribd
Recall that the conflict between the founders of the company escalated in November 2019, when Wu, with the support of shareholders, removed Zhang from all positions in the company. The confrontation continued throughout 2020, negatively affecting the company’s activities.
At the end of June, the co-founders discussed the settlement of the conflict, but did not come to an agreement.
On December 19, it became known that Wu and Zhang had entered into an agreement. Under its terms, the first will leave the company, having received compensation in the amount of $ 600 million, the BTC.com pool with the BitDeer cloud platform, and mining farms outside of China.
In December, Bitmain shareholders approved the terms of Jihan Wu’s departure from the company.
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