Bitmain split: $ 600 million settlement
The dispute between the Bitmain founders appears to have been settled with $ 600 million.
After months of struggling to control the company, Bitmain co-founders Jihan Wu and Micree Zhan have now reached an agreement
According to the Chinese cryptographers Colin Wu and several local publications, have both parties to compensation of 600 million dollars for Jihan Wu agreed . Zhan takes control of the operations of the crypto mining company.
As part of the deal, Wu will leave the company and take over the BTC.com mining pool and Bitmains mining centers abroad. This leaves Zhan the Antpool mining pool and Bitmain’s mining farms in China.
The deal also provides for Zhan to lead the artificial intelligence (AI) division and the mining hardware manufacturer. Zhan will temporarily mortgage his shares to raise the $ 600 million and buy Wu’s stake in the company.
Sequoia Capital will act as an intermediary in the negotiations
The deal is expected to be ratified at the upcoming shareholders‘ meeting, scheduled for December 28th. However, reports say that the current terms of the agreement may change in the meantime.
Although the current dispute has been settled, the division of Bitmain’s assets will make the two co-founders future competitors. As part of the agreement, Zhan will go public in the US before the end of 2022.
The company’s first attempt at an IPO passed in March 2019 and likely sparked tension between the two co-founders. Both resigned from running the company, but Wu returned in October, surprisingly firing Zhan .
A month later, Zhan declared his removal from the company illegal and threatened legal action. Zhan later regained control of Bitmain’s Beijing office and stormed the building with security guards in early June 2020 .