What Happened to Bitmain Today Series 12 (Details of the Shenzhen Battle Revealed)

What happened to Bitmain today?

The two sides clashed fiercely again, and the previous brief compromise seemed to have completely broken down.

Wu Blockchain obtained a long internal letter from Wu Jihan on July 13, which severely criticized Zhan Ketuan’s recent behavior and revealed a lot of details, such as:

1: At the end of the third quarter of 2019, Bitmain Group's cash flow was already in jeopardy. As of the end of October 2019, the short-term liquidity gap was as high as hundreds of millions of US dollars . If decisive measures had not been taken to replace management and adjust business strategies, the group would have collapsed at the end of 2019, let alone survive this year's epidemic.

2: On June 16, about 17,000 T17 mining machines were illegally transferred from the Century Cloud Core warehouse. Hainan Mainland Ark Data Technology Co., Ltd., which is outside the Bitmain Group system and in which Zhan Ketuan holds a 25% stake, sold the batch of mining machines at a low price, and the whereabouts of the 100 million yuan sales proceeds are unknown.

3: In order to protect the interests of customers, Wu Jihan paid the full payment for some goods in advance to the bank account controlled by Zhan Ketuan, but after receiving the payment of 109 million yuan and shipping the corresponding goods, the other party stopped shipping. As of July 8, 5,600 mining machines were overdue, which had a negative impact on Bitmain's reputation and brand.

4: Century Cloud Core currently owes suppliers RMB 200 million, including the labor contracts of migrant workers. Zhan Ketuan refused to repay the money after receiving a call from the bank.

On July 6, Zhan Ketuan issued an internal letter, saying that he would return his personal focus to the company's business, work hard to repair the cooperative relationship with customers and suppliers, and restore the mining machine and AI businesses to normal as soon as possible. He would make some minor adjustments to the internal structure, and said that the equity acquisition was progressing normally and he believed that an agreement could be reached soon.

Later, Wu Blockchain learned that Zhan's side forcibly took control of Wu Jihan's database and computer room, and the two sides had a dispute over this.

Wu said blockchain interpretation:

Judging from Wu Jihan's statement, Zhan seems to have no money to pay employees' wages, suppliers and bank debts . Wu Jihan will not continue to pay after being "cheated". Therefore, Zhan must sell futures to have funds to operate. This depends on whether TSMC will support it (TSMC's cooperation channels and IC patents are all in Hong Kong Bit controlled by Wu Jihan); secondly, it depends on whether there are miners who dare to take huge risks and support the purchase of Zhan's futures.

Fighting is often just a bargaining chip. After Wu Jihan is completely "cut off from food", it is very likely that compromise will be imminent.

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