Cryptocurrency mining company, Bitmain Technologies Ltd. Is reportedly relaunching its initial public offering plans. However, this time the coin is launching in the United States instead of Hong Kong. According to a report from Tencent News, Bitman has filed its application with the Securities and Exchange Commission (SEC) with Deutsche Bank as the sponsor. It is estimated that the company is looking to raise approximately $300 - $500 million. This is much lower than the $3 billion that it intended to raise from its IPO in Hong Honk that was planned for September 2018.
The company made recent headlines as one of its co-founders came back from exile to oust the other co-founder from the company. Wu Jihan, who previously stepped down from his role at the company, has returned to remove Micree Ketuan Zhan as executive director. The two have disagreed over strategy and where to focus Bitmain's efforts for future development. Mr. Jihan believes the company should focus on bitcoin Cash as he support a decentralized currency which cannot be traced while Mr. Zhan is in support of AI chip development - an investment which has not yielded great successes yet for the company.
Matthew Graham, a chief executive of Sino Global Capital, commented the following: "Wu is Bitmain's visionary founder and one of the giants of China blockchain. We'll have to see if it works out, but this is a Steve Jobs coming back to save Apple situation".
Wu Jihan sent employees the following email: "Bitmain's co-founder, chairman, legal representative and executive director Jihan Wu has decided to dismiss all roles of Ketuan Zhan, effective immediately. Any Bitmain staff shall no longer take any direction from Zhan, or participate in any meeting organized by Zhan. Bitmain may, based on the situation, consider terminating employment contracts of those who violate this note."
According to an internal email sent to staff, Jihan Wu, Bitmain's other co-founder and now chairman of the board, sent an email all employees on Tuesday, saying:
"Bitmain's co-founder, chairman, legal representative and executive director Jihan Wu has decided to dismiss all roles of Ketuan Zhan, effective immediately. Any Bitmain staff shall no longer take any direction from Zhan, or participate in any meeting organized by Zhan. Bitmain may, based on the situation, consider terminating employment contracts of those who violate this note."
Bitmain controls about 75% of the world market for bitcoin mining machines. President Xi Jinping has also endorsed blockchain and has called for support of the sector. However, due to these internal issues, the company has lost its spot as the top mining pool. This could have potential repercussions by the time the company's IPO date rolls around.