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Bitmain Founders Finally Meet Midway As They Agree On A $600M Settlement

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The crypto industry is home to several feuds while some are with law enforcement, a few others like Bitmain have been dealing with an internal vendetta. While the Bitcoin mining equipment manufacturer kept it low key for a while, the dispute between the two leaders seemed to be intact. Months through the power struggle, the co-founders of the crypto platform, Micree Zhan and Jihan Wu were finally agreeing on something.

Bitmain Power Struggle Comes To A Climax

Rewinding to October 2019, Bitmain made it to every news portal after the crypto platform had one of its founders ousted from the company. While Micree Zhan was trying to regain authority back at the mining firm, Jihan Wu continued asserting his power and kept Zhan out of the picture. Yet Zhan, went above and beyond to exert his stance. The actions of both the founders had were influencing the sales of the company. Keeping this in mind, Zhan and Wu seemed to have finally come to an agreement.

As per recent news, the founders of Bitmain had reportedly decided on Zhan taking over the Antpool mining pool as well as the mining farms in China. The mining rig hardware manufacturing platform, as well as the artificial intelligence region of Bitmain, will be overseen by Zhan.

Wu who had insinuated the entire conflict by exiling Zhan was bidding adieu to the platform. According to the agreement, Wu will take a whopping $600 million as compensation along with the BTC.com mining pool. He would also be in charge of all the overseas mining branches of Bitmain.

Reports further suggested that Zhan does not have the aforementioned settlement amount. He will reportedly lease his shares to pay Wu $600 million.

While the platform was recovering from the battle put up by its founder, it seemed to be getting back in action as it was garnering immense profits from its latest sales. VBit Technologies, a US-based firm had purchased over 3,000 19 Series Antminers. While VBit is a long time client of Bitmain, the latest sale filled the exchange’s pockets with more than $8 million.

Bitmain’s Client Purchases Over 3,000 19 Series Antminers

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Bitmain, one of the world’s largest Bitcoin miner producers, announced on the 8th of December that its long-time client of the Antminer brand, the US-based VBit Technologies bought more than 3,000 19 Series Antminers worth over $8 million.

Notably, the Antminer S19, as well as S19 Pro, happens to be the latest generation of ASIC mining hardware from Bitmain.  As per the official release, VBit Technologies now aims to increase its current aggregate operating hash rate by more than 50%.

Bitmain will be delivering 117 S19 miners this month, followed by hundreds of S19 Series models that will be shipped and deployed every month up until August next year. VBit has been a long-time client of Bitmain maintaining a collaborative partnership with the Bitcoin mining giant for the past several years.

Following the latest arrangement, Irene Gao, Antminer Sales Director of NCSA Region, Bitmain stated, “We are glad to be of assistance in their effort to their expand mining operations and to grow their presence in North America. This deal, again, proves the strong performance and capabilities of the Antminer 19 Series and our commitment to providing customers around the world the most efficient and powerful miners.”

This news comes as Bitcoin was trading close to its newly established ATH and the collective cryptocurrency industry forayed a new bull market. According to the CEO of VBit Technologies, Danh Vo, the platform was able to secure large batches of Bitmain’s most efficient mining hardware with which it can continue to carry on its expansion plans in North America. The exec also intends to bring Bitcoin mining to the mainstream in the region.

Earlier, Bitmain reportedly paused its funding for some core developers maintaining Bitcoin-related software. This was claimed by Jonas Schnelli, who happens to be a major Bitcoin Core contributor and maintainer, who tweeted losing his sponsorship after more than three years along with another contributor.

Thanks to Bitcoin’s bullish price action, bitcoin mining profits have been substantial in the last couple of months. Among the next-generation miners released this year, the most profitable was found to be SHA256 mining rig, which can mine digital assets like BTC, BCH, and BSV, is the Bitmain Antminer S19 Pro. Released in May 2020, this rig clocks hashrate speeds of up to 110TH/s pulling a profit of around $10 per day for each unit.

Battle for Supremacy at Bitmain Delays Delivery of Mining Hardware

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As per the reports, exiled co-founder of Bitmain, Micree Zhan has forcefully taken over the management of the Shenzhen-based company. The battle for supremacy in Bitmain shot up between the two co-founders, compromising the shipment of new mining hardware to their buyers

In addition, customers state they had already paid Bitmain in advance for the mining hardware. They claim the payments were transferred to an account belonging to one of the arms of the firm.

According to one of the employees at Bitmain’s Shenzhen factory, dispatch vehicles were barred from accessing the factory’s premises. Employees are obliged to follow instructions given by Zhan, who is the current legal representative of the company.

Jihan wu’s reaction

On the other hand, Jihan Wu, another co-founder of Bitmain, attempted to reclaim his power through an announcement made and signed by Bitmain Technologies Limited. In the statement, he stated that the company was seeking redress against Zhan ‘s actions.

Wu also advised employees of the company not to listen to Zhan, and to sort out the disturbance. In addition, he assured Bitmain ‘s employees of compensation in the event of any risks they may face.

Battle for Supremacy at Bitmain

The feud between the two co-founders began when Wu exiled Zhan in October 2019, claiming that he had come to steer’ the ship.’ In response, Zhan claimed that the takeover was carried out by illicit means and then waged a war against Wu to control the business. To spark the battle for supremacy in Bitmain, Zhan launched a series of lawsuits against Wu.

Until now, the conflict between the two co-founders has not affected the daily routine of the Chinese-based company. Notably, the Beijing boardroom brawl did not have any impact on operations far away in Shenzhen.

The current reports at the Shenzhen-based factory show that the row between the two has taken a dramatic twist. With the shipping of mining equipment at a halt, this might impact production at the factory.

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Cheaper T19 Bitcoin Miner Launched Bitmain to Recoup Lost Market Share

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On June 1, giant mining equipment manufacturers Bitmain announced the launch of the cheaper T19 Bitcoin miner in a bid to reclaim its lost market share. The new Antminer T19 has a hash rate of 84 terahash per second (TH/s) and power efficiency of 37.5 joules per terahash (J/TH).

The new model was designed after the cost-effective Antminer S19 Bitcoin miner, but only cheaper. The S19 which comes with a computing power of 95 TH/s, with a market price tag of $1,785. On the other hand, the cheaper T19 Bitcoin miner costs slightly less at  $1,750. According to the announcement:

“The Antminer T19 is housed with the same generation of custom-built chips found in the Antminer S19 and S19 Pro, ensuring capable and efficient operations for mining cryptocurrencies.” 

Cheaper T19 Bitcoin miner available from June 1

As per the international Bitcoin mining network, F2pool, the cheaper T19 Bitcoin miner will generate up to $3.17 in daily profits. In contrast, the efficient S19 model can generate up to $3.96 based on the expense of $0.05 per kilowatt per hour.

Moreover, the new T19 model went on sale on June 1, with the maximum restriction of two miners each to each purchaser. This limit is put in place to avoid stockpiling and to enable individual buyers to purchase mining equipment as per the company. Additionally, the latest model will be shipped between June 21 and 30 according to Bitmain.

The latest model is more effective than its predecessor the T17 model, which has declined at a staggering rate of  20 – 30 percent together with the Antminer S17. The more common failure rate is basically 5 percent. The new cheaper T19 model comes with an ‘upgraded firmware’ seemingly to enable “faster start-up speeds.”

Bitcoin Halving forced Bitmain’s hand

Furthermore, the new cheaper T19 Bitcoin miner comes after Bitcoin’s May 11 rewards halving, which slashed miners’ rewards by half to 6.25 BTC per block. The halving event has resulted in most miners shutting down shop and look for more cost effective mining equipment 

Additionally, Bitmain has lost its market share to upcoming rival Microbt. As per data by Coinshares, the Beijing-based mining giants gave up at least 10 percent of the market share to Microbt back in 2019.

Nasdaq Listed Riot Blockchain Sees Slight Growth in Q1 2020

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 Riot Blockchain, which is a public digital currency mining firm, saw a slight increase in earnings per share (EPS) during the first quarter of 2020. The Bitcoin mining outfit shared its financial results and highlights for the quarter ended on March 31, 2020.

Nasdaq listed Riot Blockchain is making significant progress in the market. In its announcement, the mining company revealed the conclusion of the SEC investigation, and the complete revamp of mining rigs in its Oklahoma mining farm. The firm wrote:

 “As compared to the same period last year, during the quarter ended March 31, 2020, Riot announced increased revenues and decreased SG&A expenses excluding stock-based compensation. As compared to December 31, 2019, the Company has substantially improved its liquidity position and increased total stockholder’s equity.”

Nasdaq listed Riot Blockchain installs next generation Bitmain S19 Antiminers

In its announcement, Riot emphasized the successful stationing of the 4,000 Bitmain S17 Pro Antminers purchased late last year; and the addition of the 2,040 Bitmain S19 Antminer revamped in April 2020.

Following the spread of the COVID-19 pandemic, the BTC mining outfit shifted a substantial amount of its S17 Antiminers; to a mining facility in New York which is run by Coinmint. Riot contemplates the new mining equipment will raise the firm’s current average hash rate by a massive 84%. Riot plans to station the new rigs by Q3 this year. 

Q1 2020 Riot Blockchain financial results 

According to the report, Riot Blockchain launched 281 freshly minted BTC coins during Q1 of 2020. The firm grew its Bitcoin directory by 60%, to 821 BTC between December 31, 2019 and March 31, 2020.

In addition, Riot Blockchain saw boosted business assets on March 31 this year, rising from $9.3 million on December 31, 2019, to $17 million on March 31, 2020. Moreover, the firm reduced its total liabilities by $300,000, to $3.8 million within the same period.

In conclusion, the mining firm reported that total mining income grew by 68% to $2.4 million, in contrast to the $1.4 million made during Q1 of 2019.

Post- Bitcoin Halving Could see 30% of Miners Close Shop as Business Turns Unrewarding

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Almost a third of bitcoin mining farms could shut down their mining machines as business turns unprofitable post-bitcoin halving, as businesses turn unprofitable due to the lowering of BTC mining rewards.

The third bitcoin mining event that was completed yesterday slashed the supply of bitcoin, reducing the incentives paid to miners for their efforts by half to 6.25 BTC per block. According to the vice president of Poolin Mining Pool, Alejandro De La Torre, BTC miners who make up 15 percent to 30 percent of the total bitcoin network hash rate are already in the process of shutting down their equipment as profit margins fall.

Miners with outdated rigs to shut down post-bitcoin halving

Indeed, mining companies that use old obsolete mining rigs such as the Bitmain S9 miner, which consumes more energy, will have to be the most affected, according to Poolin’s vice president. In his recent analysis, he wrote:

“We expect that the first 1008 blocks after the halving will be mined slowly as huge numbers of unprofitable miners drop off the network. We estimate around 30% of the entire Bitcoin network will be squeezed considering that the first 1008 blocks will have the pre-halving difficulty, but half the reward.”

Occasional halving events put a lot of pressure on the miners, as the incentive has a 50 per cent effect on the revenues produced by the mining companies. Nevertheless, some experts believe that the dip in income is indemnified through a spike in the price of the flagship digital currency; an accomplishment often associated with the past two halvings. Regardless of the argument, the less effective mining firms will be pushed out of the game easily.

Bitcoin mining is all about durability

According to Poolin VP, this is a long game that relies on durability and survival. He claims that mining companies that are unable to reduce the cost of mining to keep up with the most powerful mining rigs on the market must pay the price.

No matter how miners feel about their revenues, the new bitcoin halving event means their rewards; it will be halved for every block mined. Post-bitcoin halving, bitcoin network complexity, total hashrate, and the price of bitcoin could be big statistics to keep an eye on.

Bitcoin Mining Manufacturer Ebang’s $100 Million IPO is a Risky Venture Amidst COVID-19 Disruption

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Over the past year, the prospect of a Bitcoin mining IPO has been put forward in the industry by reputed mining organizations such as Bitmain and Canaan. With both the organizations failing to gain sufficient traction in the market, according to reports, another former player is now trying to test its luck in the water again.

According to an April 24th filing with the U.S Securities and Exchange Commission, Ebang International Holdings, a lead manufacturer of BTC mining equipment is trying its luck for the second time to go public, but with a relatively smaller target that last time. The filing suggested that Ebang had filed for a $100 million initial public offering (IPO) with the SEC.

The filing additionally mentioned that the Chinese Firm will be under the ticker symbol of EBON on the New York Stock or Nasdaq.

Earlier, it 2018, Ebang’s first attempt was rather ambitious as it failed to go public on the Hong Kong Stock Exchange when the company estimated that it would go on to proceed with an IPO estimated to be around $1 billion.

According to the filing, Ebang had generated more than 80 percent of its revenue from making mining equipment in 2019. It earned over $105 million in revenue in 2019 however it was down by 66 percent from 2018. Its loss in 2019 was about $41.4 million in comparison to the profits in 2018.

Following the footsteps of Canaan?

Last year, Canaan Inc. made its debut on NASDAQ, on the 22nd of November, a few days after it was reported that the Bitcoin mining equipment manufacturer raised over $90 million in its U.S IPO. Canaan’s shares, priced at $9.00 per share, had been approved by NASDAQ Global Market it was traded under the symbol ‘CAN.’

Before successfully launching in the US, the mining organization had attempted to go public in Hong Kong, but their plans were dismissed by the regulators as the lawmakers were skeptical and very reluctant to authorize a digital asset company into public listings.

Ebang is currently taking a similar path after failing to receive its clearance from the Hong Kong Exchange back in 2018.

However, it is important to note that Canaan’s endeavours in the United States have been far from profitable, and the mining giant’s shares had plummeted by 40 percent in the 2nd week of December, right after their IPO.

With the ongoing COVID-19 pandemic, Ebang is playing a risky game with its IPO as the timing is far from ideal. The outbreak has resulted in a global disruption of the social and economic activities around the world, raising major question marks against Ebang’s IPO success.

Reports claim Bitmain secretly approached SEC as watchdog continues to weigh the pros and cons of crypto

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Bitcoin and the Securities and Exchange Commission [SEC] have gone toe-to-toe on several occasions, and that has mainly been due to the regulations surrounding the world’s largest cryptocurrency. China, which has become an integral part of the Bitcoin ecosystem, saw its Bitcoin community getting riled up recently when Tencent News’ “First Line” report claimed that Bitmain had secretly submitted a listing application to the SEC with Deutsche Bank being the sponsor.

Many in the cryptocurrency space has claimed that this is Jihan Wu’s ploy to make an impact again after Bitmain’s slight dip after the Bitcoin Cash fork. Just recently, Jenke, the Chairman of Bitmain, had stepped down as the legal representative of the company with Jihan Wu taking over that spot. With Jank leaving his position, the Jank Group had also vacated the executive director spot.

The SEC, for the most part, has made positive decisions keeping crypto in mind, but Congressman Tom Emmer had different ideas when he recently announced a bill to protect digital assets from the SEC. Emmer had stated:

“Companies that have followed our current rules of the road, even if convoluted, deserve the certainty that they can offer their digital asset to the public and help contribute to a truly decentralized network,” he said during the testimony.”

The Congressman claims that he wants to table a bill that would preserve integral token sales with the caveat that those projects will have to clear set legislation first.

He made his agenda clear and informed the public that Congress was doing everything in its power to create a better financial system. He allayed fears from the public that stated all members of the Congress did not have knowledge about the new field and during the latest Mark Zuckerberg testimony said:

“I can safely say that this is at least the second time you’ve testified before Congress where members look like they have invested absolutely no time learning about new technologies in order to responsibly question tech companies.”

Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

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Bitcoin’s integral factors turn bullish as BTC price goes past 9k

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The Bitcoin world has been quite the restless machine, with price fluctuations running rampant combined with various changes in its integral factors. After holding a price point of $8263, the world’s largest cryptocurrency has amassed a steady market cap of $148 billion, an indication that the market still has the chance to go upwards.

The Bitcoin ecosystem witnessed 351,632 transactions taking place on October 21, a 4 percent increase above the year’s average. The cryptocurrency still has a long way to go before it climbs to the year’s high, which requires a 22 percent from the current price point.

The surprising factor about the crypto industry is that despite the price fall, Bitcoin still had a market cap equivalent to banking behemoths like HSBC. BTC users had another reason to rejoice when it came to light that the October 21st average transaction fee was $0.07, a $3.64 fall compared to the yearly high of $3.71. The significant fall in the median transaction value was seen as a marker for positive adoption, especially at a time when mainstream banks levy such large amounts as transaction fees.

The Bitcoin community had also been riled up when Bitmain announced that it was opening up the world’s largest facility for Bitcoin mining, not too long ago. The Rockdale facility will be developed to a 25MW capacity with a 50 MW facility remaining under construction. According to Bitmain:

“Bitmain is truly honored to announce this news and is excited to work with local partners, government and stakeholders in realizing this vision, throughout the initial set-up phase, operations and beyond.”

Bitmain continued:

“Bitmain also plans to partner with the local schools and educational institutions to provide professional and technical training programs that would prepare members of the community for careers with the data center.”

At press time, Bitcoin was trading for $9147 with a total market cap of $164.7 billion. This came after a hike in both the hourly and 24-hour time frames as the world’s most significant cryptocurrency went up by 19.29% over the last 24 hours.

Disclaimer: The presented information is subjected to market conditions and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.

Never miss our daily cryptocurrency news, price analysis, tips, and stories. Join us on Telegram | Twitter or subscribe to our weekly Newsletter.