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Rumor: Jihan Wu and the Jenke Group to Retire as CEOs of Bitmain

With the New Year only hours away, news reaching Ethereum World News indicate that the giant Bitcoin mining and ASIC manufacturing company of Bitmain might be undergoing some radical top management changes. According to reports by both Cointelegraph and Odaily, Jihan Wu and the Jenke Group will soon be retiring as CEOs of the company.

Odaily went to name a single successor with a surname of Wang. The report went on to state that Bitmain is in a transitory period as the changes are implemented.

Earlier Reports of Jihan Wu Losing Executive Power at Bitmain

The unconfirmed reports of major changes at the top leadership at Bitmain come a month after similar rumors surfaced that Bitmain had undergone a massive board reshuffle. In the restructuring, Jihan Wu had lost his seat as the board’s executive director and was now serving as a supervisor. His position at Bitmain had been replaced by Zhan Ketuan.

Possible Shut Down of Mining Operations at the Mining Giant

Odaily went on to add that the firm could also wind down all mining operations carried out by Bitmain. In addition, the firm will sell all its currently operational Antminer S9s. Once again, we would like to remind our readers that this are unconfirmed reports.

Layoffs Already Underway

Only one week ago, Ethereum World News had indicated that Bitmain was laying off up to 50% of its staff as part of streamlining operations due to the cryptocurrency bear market. With a staff count of over 2,000, the Bitmain layoffs might shake the crypto-verse further if they are accompanied by the aforementioned ceasing of mining activities. Such an event would shift the balance of mining operations and open the doors for a reentry of small scale miners into the BTC network.

A Continual Domino Effect

Earlier on in the month, we had analyzed why the Bitmain IPO would probably not be approved by the Hong Kong Stock Exchange (HKEX). A summary as to why the HKEX would be reluctant to list Bitmain is as follows.

  • $740 Million in Q3 losses excluding cost of financing Hash Wars
  • $10 Million in combined costs from both BCH camps for financing the hash wars
  • Bitmain allegedly liquidating its stash of BCH to pay off supplier debts
  • Lawsuit against Bitmain and BCHABC supporters for allegedly hijacking the BCH blockchain
  • Earlier rumors of Jihan Wu losing Executive powers at Bitmain

Conclusion

Summing it up, the rumors indicating that Bitmain might be in financial trouble have continued to pile up from around the third quarter of 2018. What remains, is official confirmation from Bitmain that all is not well at the ASIC (Application Specific Integrated Circuit) chip manufacturer and crypto mining company.

What are your thoughts on the unconfirmed reports that Jihan Wu and the Jenke Group will be resigning as Bitmain’s COEs? Please let us know in the comment section below. 

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

The post Rumor: Jihan Wu and the Jenke Group to Retire as CEOs of Bitmain appeared first on Ethereum World News.

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Is Bitcoin Cash (BCH) Losing Value Due to Bitmain’s Alleged Financial Woes?

The crypto community breathed a sigh of relief after the Bitcoin Cash (BCH) hash wars reportedly ended on the 23rd of November. The Hash Wars that had officially started on the 14th of the same month, were due to two factions of the BCH community not agreeing on which upgrade to implement. This then led to a bitter battle between one camp led by Craig Wright (Bitcoin SV) and another by Roger Ver and Jihan Wu. The two camps eventually settled to fork the BCH blockchain.

Mr. Wu is the current CEO of Bitmain which is a company that specializes in designing ASIC chips for Bitcoin mining. The company also operates two of the largest Bitcoin mining pools: BTC.com and Antpool.

Signs of Trouble at Bitmain

The initial signs of trouble at Bitmain started right before the Hash Wars when it was reported that Jihan Wu had lost his seat as the company’s board executive director after a board reshuffle. Jihun was reportedly replaced by Zhan Ketuan. The reason for the reshuffle was not explained but on the same day, 90,000 miners were hurriedly deployed in China’s far-western region of Xinjiang to mine Bitcoin Cash ABC – the current BCH.

After the Hash Wars were over, it was rumored that the Q3 financials of Bitmain indicated that the company had made losses amounting to $740 Million. This amount excluded the cost of financing the hash wars. The unconfirmed losses by the company has led many to speculate that the pending IPO is an exit strategy by execs at Bitmain.

According to research by a team at Bitmex, the joint loss by both camps due to the BCH hash wars could well have exceeded $10 Million. Bitmain has also closed down its Israeli Blockchain development center, citing crypto market conditions.

Pending Law Suit Against Bitmain

Soon after the hash wars, UnitedCorp launched a suit against Bitmain, Bitcoin.com, Roger Ver, Kraken Bitcoin Exchange and others, claiming they had hijacked the Bitcoin Cash Network after the November 15th hard-fork.

Rumors that Bitmain is Liquidating its BCH

Additional rumors circulating on Crypto Twitter indicate that Bitmain might be liquidating its BCH stash to pay off supplier debts totaling $600 Million. One such tweet can be found below.

The same twitter user was the one who informed the crypto community about the potential $740 Million in Q3 losses made by Bitmain. The user also had this to say in a recent tweet.

PREDICTION: Bitmain will finish the year with NEGATIVE $1,2-$1,5 BLN NET INCOME and cement its place as most money losing company in the industry #BitmainIPO @HKEXGroup

If the reports of Bitmain’s financial woes turn out to be true, it explains why Bitcoin Cash has continually fallen from the number 4 spot on coinmarketcap.com, to its current number 7 ranking. Before the hash wars, BCH was trading at around $500. The digital asset is now valued at $86 indicating a 83% drop in value in a period of one month. 

What are your thoughts on the drop in value of BCH? Could it be linked to the ‘troubles’ Bitmain is facing? Please let us know in the comment section below. 

[Image courtesy of stuff.co.nz]

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

The post Is Bitcoin Cash (BCH) Losing Value Due to Bitmain’s Alleged Financial Woes? appeared first on Ethereum World News.

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Rumor: Bitmain Financials Indicate $740 Million In Q3 Losses Excluding Cost of Bitcoin Cash (BCH) Hash War

Since the hard fork of Bitcoin Cash that resulted in the ABC camp claiming the ticker for BCH, the value of the digital asset has dropped from around $500 on the day before the event (November 14th) to current levels of $115. This is a drop in value of 77% in a period of less than a month. Some crypto enthusiasts and analysts have concluded that BCH has entered what is known as a Downward Spiral. This has been explained as the situation where it might not be profitable to mine the digital asset.

Recap of Hash Wars

The Bitcoin Cash hash wars involved two camps. There was Craig Wright who supported the Satoshi Vision upgrade of BCH or simply BSV. Then there was Roger Ver and Jihan Wu (CEO of Bitmain) who were for the ABC version of the coin’s upgrade.

Bitmain Rumored to Have Made $740 Million In Loses in Q3, 2018

According to the Bitcoinist, unconfirmed leaked information indicate that Bitmain has lost $740 Million in Q3 of 2018 excluding the costs to financing the Hash Wars. The Bitcoinist cites a twitter account with the username of @BTCKING555 who revealed the information as follows.

We got leak of Bitmain Q3 numbers! COMPLETE DISASTER. The company lost $740 Million including losses on inventory and bitcoin cash! And this is not accounting for hash war costs! #bitmainipo @HKEXGroup

The full tweet can be found below.

Concerns that the Anticipated Bitmain IPO Might Not Be As It Seems

If the reported losses of $740 Million turn out to be true, and without factoring in the costs of the Hash Wars, investors might begin to assume that the anticipated public offering of Bitmain worth $18 Billion might be a way of passing over ‘the bag’ of a failing venture.

It was also revealed that Bitmain decreased its holdings of Bitcoin in preference for Bitcoin Cash around March this year.

One Medium blog summarized the scenario of passing the bag through an IPO as follows:

You have a persisting bear market.

How do you realize the value of this monolith crypto business and your holdings?

You IPO and pass the bag on in one huge lumped stock offering and hope investors don’t realize all of your current assets are very, very illiquid.

UnitedCorp Files Suit Against Bitmain, Roger Ver and Others

In addition to the aforementioned concerns, UnitedCorp has launched a suit against Bitmain, Bitcoin.com, Roger Ver, Kraken Bitcoin Exchange and others. The suit claims that they hijacked the Bitcoin Cash Network after the November 15th hard-fork. UnitedCorp filed its suit in the US District Court for the Southern District of Florida.

What are your thoughts on the possible losses at the Bitmain cryptocurrency mining company? Do you think that the cost of Hash Wars could increase the rumored figure of $740 Million significantly? Please let us know in the comment section below. 

[Image courtesy of AngelBroking.com]

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.

The post Rumor: Bitmain Financials Indicate $740 Million In Q3 Losses Excluding Cost of Bitcoin Cash (BCH) Hash War appeared first on Ethereum World News.

Posted on

Rumor: Bitmain Financials Indicate $740 Million In Q3 Losses Excluding Cost of Bitcoin Cash (BCH) Hash War

Since the hard fork of Bitcoin Cash that resulted in the ABC camp claiming the ticker for BCH, the value of the digital asset has dropped from around $500 on the day before the event (November 14th) to current levels of $115. This is a drop in value of 77% in a period of less than a month. Some crypto enthusiasts and analysts have concluded that BCH has entered what is known as a Downward Spiral. This has been explained as the situation where it might not be profitable to mine the digital asset.

Recap of Hash Wars

The Bitcoin Cash hash wars involved two camps. There was Craig Wright who supported the Satoshi Vision upgrade of BCH or simply BSV. Then there was Roger Ver and Jihan Wu (CEO of Bitmain) who were for the ABC version of the coin’s upgrade.

Bitmain Rumored to Have Made $740 Million In Loses in Q3, 2018

According to the Bitcoinist, unconfirmed leaked information indicate that Bitmain has lost $740 Million in Q3 of 2018 excluding the costs to financing the Hash Wars. The Bitcoinist cites a twitter account with the username of @BTCKING555 who revealed the information as follows.

We got leak of Bitmain Q3 numbers! COMPLETE DISASTER. The company lost $740 Million including losses on inventory and bitcoin cash! And this is not accounting for hash war costs! #bitmainipo @HKEXGroup

The full tweet can be found below.

Concerns that the Anticipated Bitmain IPO Might Not Be As It Seems

If the reported losses of $740 Million turn out to be true, and without factoring in the costs of the Hash Wars, investors might begin to assume that the anticipated public offering of Bitmain worth $18 Billion might be a way of passing over ‘the bag’ of a failing venture.

It was also revealed that Bitmain decreased its holdings of Bitcoin in preference for Bitcoin Cash around March this year.

One Medium blog summarized the scenario of passing the bag through an IPO as follows:

You have a persisting bear market.

How do you realize the value of this monolith crypto business and your holdings?

You IPO and pass the bag on in one huge lumped stock offering and hope investors don’t realize all of your current assets are very, very illiquid.

UnitedCorp Files Suit Against Bitmain, Roger Ver and Others

In addition to the aforementioned concerns, UnitedCorp has launched a suit against Bitmain, Bitcoin.com, Roger Ver, Kraken Bitcoin Exchange and others. The suit claims that they hijacked the Bitcoin Cash Network after the November 15th hard-fork. UnitedCorp filed its suit in the US District Court for the Southern District of Florida.

What are your thoughts on the possible losses at the Bitmain cryptocurrency mining company? Do you think that the cost of Hash Wars could increase the rumored figure of $740 Million significantly? Please let us know in the comment section below. 

[Image courtesy of AngelBroking.com]

Disclaimer: This article is not meant to give financial advice. Any additional opinion herein is purely the author’s and does not represent the opinion of Ethereum World News or any of its other writers. Please carry out your own research before investing in any of the numerous cryptocurrencies available. Thank you.