Chinese mining manufacturer Bitmain has delayed shipments of its Bitcoin Antminer mining machines for three months amid a conflict between co-founders, Jihan Wu, and Micree Zhan Ketuan, who are vying for control of the company.
As reported by various news outlets yesterday, Bitmain’s official Antminer mining brand posted a statement on its WeChat account informing customers of the delays. In the announcement, they said that “external interference on the management of the company” is the leading cause of the delay.
They also reported that customers whose equipment was in delivery in June and July would have to wait until September and October. This report means that Bitcoin mining equipment gets through pre-orders, which must be done two to three months in advance. The backorders were around March, which would mean a costly wait of six months or even longer for the miners.
Jihan Wu and Micree Zhan Ketuan, Bitmain Co-founders, are embroiled in a bitter fight for control of the company in a dispute that began late last year. Over time, it is evident that conflicts have started to impact the operations of the company negatively.
At the moment, to compensate customers for the delays, Bitmain is offering two alternatives. The first option involves cash coupons equal to the theoretical mining revenue between now and the actual delivery date. Those coupons could be a payment for future orders.
The second is that customers will be able to request a refund, provided they have not received their shipments 60 days after their written notification to Bitmain. Customers will not be able to choose both options simultaneously.
For several years, the two co-founders ran the company together; however, in October last year, Wu expelled Zhan, dismissing his position at the company in a statement. The event took place amid controversial circumstances, but from then on, Wu took control of Bitmain’s operations.
There is a Fight for control
It did not take long for the conflict to go to court. In June this year, a court in China ruled in Zhan’s favor, allowing him to return to power. Zhan, who owns a 37% stake in the company, has now taken over control of Bitmain’s Shenzhen-based operations. However, according to Coindesk, the team for Jihan Wu’s portion of the company is who controls the WeChat account from which the delay communication was sent. According to this media, the situation threatens to become a paralysis of the company’s operations.
He suggests, Zhan’s side is likely to have no more comfortable time with shipments either, as Wu also controls the mining chip supply chain through Bitmain’s parent entity in Beijing. Previous reports had suggested that conflicts between the co-founders were delaying shipments.
By Jenson Nuñez
