What Happened to Bitmain Series 14 (Zhan Ketuan emptied the mining farm and Wu Jihan built a "new factory")

What happened to Bitmain?

After Zhan Ketuan threw out court documents and used public opinion to claim that Wu Jihan could not return, referring to "The court suspended Wu Jihan's administrative lawsuit for change of legal person five times, and Wu Jihan will completely lose control of Bitmain", Wu Jihan fought back. We learned some exclusive recent developments from the second notice issued by Wu Jihan to all employees.

It is reported that Zhan Ketuan will hold a general meeting on Sunday to answer employees' questions. Wu said that blockchain will also convey Zhan Ketuan's voice in a timely and objective manner.

What is Zhan Ketuan doing?

1: Empty the mine and recover funds

Wu Jihan announced: (Zhan Ketuan's side) recently carried out a "raid" at the Zhenglanqi mining farm in the middle of the night and illegally transferred more than 10,000 supercomputing servers hosted at the mining farm. Their whereabouts are currently unknown and may have been resold.

Interpretation: Wu said that the most important thing for Zhan Ketuan is money. He has adopted measures such as selling off factory inventory, not shipping after Wu Jihan paid, and looking for investors for financing. Reselling mining machines is the latest practice.

Its goal is simple, which is to find funds and build mining machines.

But compared with the money paid for tape-out and suppliers, it is probably a drop in the bucket. In addition, Zhan Ketuan took back the legal person of Beijing Bit and took over numerous debts in Beijing and Shenzhen, which he had no money to pay.

If Zhan Ketuan cannot win quickly in Cayman, taking back the Beijing legal person may be a "pot" for himself. As the third-party lawyer said, there is a high possibility that he will be sued in large numbers or even become a "deadbeat".

2: Destroy the other party’s IT equipment

Wu Jihan announced that Zhan Ketuan took this opportunity to enter the company's server hosting room in the early morning of July 10 and personally unplugged the company's server network cables, causing some of the company's core departments to be unable to work to this day.

3. Interfering with employees’ work

Wu Jihan announced that Zhan sent people to harass employees at their homes, and even after being stopped by the police, he turned to posting notices with the employees' ID numbers at the entrance of the employee community.

Interpretation: These two points are mainly to threaten employees to return to work in the company and prevent Wu Jihan’s employees from working.

What is Wu Jihan doing?

1: The core is to establish a new supply chain system

Wu Jihan announced that the change in Century Cloud's management team marks a new stage in the relationship between the company and Zhan Ketuan. The company is determined to restore the mining machine production supply chain to normal as soon as possible. To this end, it has started the operation of the second supply chain department to replace Century Cloud's original role in the group system before Century Cloud's business management order is restored.

Tianyancha data shows that on July 16, Beijing Silicon Yuan Continental Technology Co., Ltd., which is controlled by Hong Kong Bit, established a new Shenzhen subsidiary: Shenzhen Silicon Yanghang Technology Co., Ltd. Wu said blockchain learned that on July 12, Wu Jihan appointed Long Zhengxiang as the new person in charge of supply chain and production in Shenzhen.

2: Publish content publicly to influence public opinion.

Let employees and the outside world know that Zhan Ketuan is unable to lead the company to success. The following details are included in the letter to employees:

(I): Mr. Ji Han is the company's employee No. 001, and Zhan Ketuan is the company's employee No. 002. Zhan Ketuan did not fulfill his equity commitment to the technical team, which led to the departure of the first generation of technical team members, including the company's employee No. 004. (This is also the reason why Zhan Ketuan personally holds a large number of shares. Early R&D personnel were very dissatisfied with Zhan Ketuan, such as Yang Zuoxing's departure.)

(II): In 2018, he insisted on putting into production chips that had defects found during testing, wasting more than $600 million on just one project. His management style was rough and he often insulted employees, and many colleagues had personal experience. In 2019, Wu Jihan kept his promise and withdrew, but the company's funding gap under Zhan Ketuan's operation had reached $300 million by the end of October. (According to employee feedback, no employee who originally reported to Wu Jihan has turned to Zhan Ketuan. On the contrary, to the surprise of many people, many of Zhan Ketuan's former confidants did not choose to return)

Another detailed article published at the same time, titled “Mining Boss’s Journey: Bitmain’s Self-rescue History”, revealed the following details:

(III): The BM1393 chip incident is even more incredible. Chip expert Zhan Ketuan invested a lot of money in a chip that had already failed, and finally failed again as expected. From 2017 to 2018, Bitmain had at least 4 mining machine chip tape-out failures, including 16nm, 12nm and 10nm chips, of which the 16nm tape-out failed twice, resulting in a loss of at least 1.2 billion US dollars.

Attachment: Letter from Jihan Wu to all colleagues