Bitmain, the world's largest Bitcoin mining equipment company is undergoing a complete overhaul, as the new CEO, Wang Haichao, will replace two of the company's original founders, according to a new report (January 10th) ).
It has not been a long time since many people considered Bitmain to be the most valuable company in the cryptocurrency industry, especially considering the fact that it controlled a significant percentage of Bitcoin data mining hardware in the world. However, there is no doubt that there have been new concerns afflicting society, causing many to question its status of great value.
In fact, it seems that Bitmain now has a new CEO and that two of its founders will leave, as per a recent SCMP report. Although there have been persistent reports on the transition in the local media, Bitmain has refused to comment on the report, or offer an actual timetable for the transition.
Not long ago, many were amazed by the exponential growth of Bitmain. In fact, there were many analysts who believed that Bitmain was on track for $ 10 billion in revenue last year, thanks to an incredible first quarter of 2018 in which the company generated $ 2 billion. At the time this was considered a huge growth, especially considering that Bitmain had generated 2.5 billion dollars in 2017 and 300 million dollars the year before.
The company also made headlines when it was responsible for some new additions to the "Hurun List", a list of China's richest and most influential entrepreneurs. The list boasts executives from some of the most important Chinese companies such as Alibaba and Tencent. Many believed that the fact that the Bitmain executives were already on the list was a sign of things to come.
Fall from Grace
However, Bitmain's Q2 2018 numbers were not only less impressive, but they were also disappointing for many who followed the company. In fact, the company lost $ 400 million in the second quarter, which was its worst quarter ever. It is obvious that no company wants to publish its worst quarter just before its initial public offering (IPO), especially when many believed that this would be the biggest IPO linked to the cryptocurrency of all time.
The company was also forced to close its research and development office in Tel Aviv, Israel, in December 2018, which led many to believe the company was forced to cut costs. The head of the Israeli office, Gadi Gilkberg, has blamed the markets for closure, stating: "The crypto market has rebounded in recent months, which has forced Bitmain to examine its various activities around the world and to concentrate again its activity according to the current situation. "
Reportedly, the founders are moving away from making daily decisions, but will still be decisive when it comes to making "final call" decisions. The new CEO is Wang Haichao, who is currently the technical director of Bitmain's product, though when exactly he will move completely into the CEO role it is not clear yet.