Bitmain co-founder Jihan Wu will leave the company and receive a compensation package of $600 million, according to Colin Wu, a reporter for Wu Blockchain, a Chinese cryptocurrency industry news outlet.
On Saturday morning, December 19, he tweeted that he had received confirmation from multiple sources that Bitmain was preparing major leadership shake-ups.
As part of this process, Micree Zhan, the other co-founder, will return to the role of chief executive.
Jihan Wu, in addition to the $600 million severance, will head BTC.com, the mining platform Bitdeer, and will oversee mining operations outside China.
Exclusive: Wu confirmed from multiple sources that Bitmain launched a major spin-off: Micree Zhan returned to Bitmain to take charge of the mining machine, and Jihan Wu and his team took https://t.co/1YRYr4QCmY, Bitdeer, overseas mines and 600 million US dollars to leave. pic.twitter.com/GA7iXb1g5u
— Colin Wu（Wu Blockchain） (@WuBlockchain) December 19, 2020
Sequoia Capital serves as intermediary in the deal. As part of the agreement, Micree Zhan pledged to complete Bitmain’s move to the U.S. stock exchange by December 31, 2022. After the IPO, the company’s value will be $5.5 billion.
A shareholders’ meeting to approve the forthcoming changes is scheduled for December 28.
Earlier, in autumn 2019, Jihan Wu became Bitmain’s CEO and, with shareholder backing, ousted Micree Zhan from all posts. In June 2020, Micree Zhan regained control of Bitmain’s Beijing office and pledged the company would pursue an IPO.
Prior to this, he accused his partner of illegally seizing control of the firm. He claimed there was no shareholders’ meeting and that Wu forged their signatures.
In September, Jihan Wu became the company’s legal representative and executive director. The status as legal representative gave him authority to act on behalf of the company, to sign and enter into agreements. Micree Zhan remained in the position of general manager.
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