- Bitmain abandoned by three teams in recent weeks
- One group from operations and manufacturing and two groups from chip design division
- One of these groups actively trying to raise capital currently and compete with Bitmain
- Threats $560 million in pre-round IPO commitments could be pulled
Bitmain the creator of chips for ASIC miners, and operators of one of the worlds largest mining farms have had some complications to deal with in recent days, as they prepare for their IPO.
After securing $560 million in pre-round IPO fund raising, key investor Temasek Holdings a huge Singapore Government owned investment firm, has threatened to withdraw “due to [bitcoin CEO] Jihan [Wu] misrepresenting info.”
Breaking: China sources report Bitmain has some $560 mln in commitments for this pre-IPO round. Key investor is @Temasek threatening to withdraw due to Jihan misrepresenting info. Jihan is on calls trying to salvage deal. Chances of the deal breaking up is extremely high now!— BTCKING555 (@btcking555) 22 August 2018
Further more twitter is a blaze with comments surrounding tweets made by Blockstream's Samson Mow (@Excellion) stating that three of the main internal teams at Bitmain, have walked out in recent weeks, and are now actively competing with their former company in a bid to raise capital.
Even going as far as to say they approached friends of his.
Three Bitmain teams abandoned the company in recent weeks: one group from operations and manufacturing, & two groups from their chip design division. One of those groups is actively trying to raise capital to compete with Bitmain. They approached a friend of mine. #BitmainIPO 😂 pic.twitter.com/6ivOjpzDaf— Samson Mow (@Excellion) 26 August 2018
Bitmain has had a controversial past, with the CEO Jihun Wu becoming quiet divisive due to his public support for Bitcoin Cash over Bitcoin. It has been revealed that Bitmain holds approximately 11% of the total supply of Bitcoin Cash (well into 1 million+ BCH) and as BCH dollar/sat value has dropped so has the value of Bitmains holdings.
Bitmain reported profits of $1 billion in Q1 2018. The company is controlling around 80% of the entire mining space, including large investments in cloud mining in both BTC and BCH varients. The Bitmain IPO is certainly going to cause waves in the crypto space, as it would be the biggest IPO the industry has seen to date.
Although commentators have remarked repeatedly that the IPO could infact be a exit scam. With Bitmain selling the peak, before the underlying holdings in BCH crash, with CryptoDisrupt's Mark Hartley asking “Is the Bitmain IPO the biggest exit scam crypto will ever see?”