Bitcoin Mining Giant Bitmain Postpones Orders Amid Power Struggle Between Its Co-Founders

Bitmain infighting causes order delays

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Dovey Wan, founder of Primitive Ventures, recently shared an announcement posted by Bitcoin mining giant Bitmain about the postponement of its July/June orders.

The delivery of its Antminer hardware is now scheduled for September/October at the earliest.

The delay has been caused by "external interference" affecting Bitmain’s operations, which Wan attributes to the ongoing power struggle between the company’s two co-founders, Wu Jihan and Micree Zhan.

If Bitmain’s ASICs are not shipped within 60 days of submitting a request to accelerate the delivery process, its customers have the option of submitting a refund application.

The company’s clients can also be compensated in theoretical mining revenue based on the pay-per-share (PPS) reward system.

Bitmain’s supply chain splits in two

After being ousted by Wu in October 2019, Zhan, who has a 60 percent stake in the mining behemoth, made a stunning comeback by scoring a legal victory earlier this year. He took control of Beijing's Bitmain Technology with private guards.

Image by @DoveyWan

In retaliation, Wu registered a Shenzhen-based subsidiary back in June to reportedly create a separate supply chain line.

The split is already taking a toll on Bitmain’s business, with the recent order postponement being the first major red flag.

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Slashed prices and lost miners

Back in April, Bitmain allowed its customers who had bought its flagship miners, AntMiner S17+ and T17+, to get a 10 percent discount with coupons. Along with other manufacturers, it was forced to substantially cut prices following the market crash in mid-March.

In other news, 10,000 ASICs reportedly disappeared from Bitmain’s mining facility in Inner Mongolia back in June.

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Alex Dovbnya

Alex covers all things crypto — from major projects, which are fighting tooth and nail to gain the upper hand in the burgeoning industry, to the latest regulatory trends around the world. He’s a firm believer that Blockchain has the potential to reshape pretty much every business out there, and cryptocurrencies are only a stepping stone to the upcoming decentralized revolution.