Regarding the settlement between Bitmain’s two co-founders
The disagreement between Micree and myself, the two co-founders of Bitmain, has been finally settled in an amicable and, more importantly, a constructive manner. I have resigned from the CEO and Chairman of Bitmain as of today.
Micree purchased almost half of the Bitmain shares owned by Bitsource, which is a code name represents a group of founding shareholders including myself, for US $600m. In order to complete the share purchase, Micree obtained a loan of US $400m from Bitmain while he committed to raise another US $200m from outside of the group.
As of yesterday, Bitmain has US $327m in fiat cash, which was twice higher than what is required by the preferred shareholders in order to close this settlement. The short term liquidity gap is negative US $92m. The negative gap indicates a good solvency of the group. On the other hand, Bitmain has the best mining machines available for sale in the market. As such, the financials of Bitmain is strong and healthy so the loan to Micree will not have any negative impact to the sustainability of Bitmain’s operation .
Also pursuant to the settlment, Bitdeer is spun off from Bitmain today together with the mining farm operations in the US and Norway. I will be the chairman of Bitdeer. Matt Kong will be the CEO of Bitdeer. Antpool will soon be spun off into an independent company to be led by Micree.
Through the above-mentioned arrangement, Bitmain’s business model will be highly streamlined which will make it much easier to go for an IPO. The B and B+ Round investors also got their number of tripled under this arrangement as compensation of valuation adjustments. It is more likely for those investors to be profitable from their investment.
–From now until the listing of Bitmain, the board of Bitmain will consist of 5 seats. Micree will have the right to nominate three seats and I will nominate the other two. To better serve the interest of Bitmain, I have invited two colleagues who are more capable than myself to perform the duty as directors. They are Xiang Zhu and Jianchun Liu. Xiang was one of Bitmain founding team, and he led the hardware design of S1 and S19, which are among the most import mining rig products of Bitmain. Jianchun has been our chief financial controller and CFO for 5 years. These two board members will serve the interest of the company as a whole but not of the interest of any specific shareholder(s). According to the corporate governance arrangements, we assigned the risk control and internal audit duties to Xiang and Jianchun.
As part of the transition of the leadership, all the subsidiaries that remain to be within the Bitmain group have proceeded to file the change of their board members or legal representatives today.
Upon the closing of the settlement today, Bitmain has turned over a new page with great opportunities ahead. As the co-founder of Bitmain, I enjoyed the 2,815 days of journey working for it with numerous help and support from lots of customers, colleages, friends and investors, and I give my most sincere blessing to Bitmain and its leadership of Micree.
Jan 26, 2021