Companies are willing to invest millions of dollars in crypto mining. Interestingly, the Bitcoin rig manufacturer made an important announcement. According to the announcement made by Bitmain, the business operations will resume as normal in light of former chairman and CEO Jihan Wu’s departure from the company.
As a reminder, orders of Bitmain’s ASIC mining rigs were previously halted temporarily in 2020 during a power struggle inside the company. The situation inside the company was from being ideal due to the conflict between Bitmain’s two co-founders. As a reminder, the conflict happened between Micree Zhan and Jihan Wu. Interestingly, Zhan temporarily stopped a Shenzhen subsidiary from shipping products to customers.
This week, more precisely on Wednesday, Jihan Wu amicably left Bitmain, after buying $600 million worth of shares from Zhan as well as other shareholders. Interestingly, the team behind Bitmain’s flagship Antminer released a statement. Based on the information taken from this statement, internal changes won’t affect the company. It means customers will receive their products in accordance with the terms and conditions.
Bitmain and its achievements
The history of Bitmain dates back to 2013 when Jihan Wu and Micree Zhan founded the company. Interestingly, by 2018 the company had become the largest manufacturer of ASIC machines for Bitcoin in the world. This is not the end of the story as the company runs two mining pools, Antpool and BTC.com. These collectively account for around 20% of all Bitcoin mining as well as 30% of Bitcoin cash mining.
It is worth mentioning that, in spite of the uncertainty regarding the leadership of the company, Bitmain secured a contract with Riot Blockchain. As part of the contract, Riot Blockchain will pay $35 million for 15,000 Antminer S19 series machines to Bitmain. Interestingly, Riot Blockchain is a Nasdaq-listed cryptocurrency mining firm.
According to the Colorado-based company, the new purchase will increase its total Bitcoin mining hash rate by 65%. Riot Blockchain will pay $35 million for 3,000 S19 Pro Antminers as well as 12,000 S19j Pro Antminers. Based on the information provided by the company, it expects to receive and deploy the new miners starting from May 2021 up to October 2021. Bitmain is one of the world’s largest crypto hardware suppliers and this fact underlines the importance of the company. It is not surprising that companies such as Riot Blockchain are willing to buy crypto hardware from Bitmain.
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