Bitmain co-founder Jihan Wu will leave the company and receive a $600 million compensation package, China-based cryptocurrency news reporter Colin Wu has reported.
On the morning of Saturday, December 19, he tweeted that he had received confirmation from multiple sources that Bitmain was preparing for a major executive reshuffle.
As part of the process, the company’s other co-founder, Micri Zhang, will return as CEO.
Jihan Wu, in addition to a $600m payoff, will head Profit Revolution BTC.com, the Bitdeer mining platform and oversee mining operations outside of China.
Sequoia Capital is acting as intermediary in the deal. As part of the agreement, Mikri Zhang has promised to complete Bitmain’s IPO on the US stock exchange by December 31, 2022. After the IPO, the company will be valued at $5.5 billion.
A shareholder meeting to approve the upcoming changes will be held on 28 December.
As a reminder, Jihan Wu became Bitmain’s CEO in the fall of 2019 and, with shareholder support, ousted Mikri Zhang from all positions. In June 2020, Mikri Zhang regained control of Bitmain’s Beijing office and promised an IPO of the company.
Before doing so, he accused his partner of illegally seizing control of the firm. According to him, there was no shareholder meeting and Wu had forged their signatures.
Nevertheless, in September, Jihan Wu became Bitmain’s legal representative and executive director. The legal representative status gave him the right to act on behalf of the company, sign and conclude agreements. Mikri Zhang remained as general manager.