Bitmain’s Power Struggle Takes Toll on Customers as Co-Founder Halts Shipments

Bitmain’s Power Struggle Takes Toll on Customers as Co-Founder Halts Shipments

Credit: CoinDesk archives, modified using PhotoMosh

Its employees have been but now Bitmain’s customers are also in the middle of the escalating power struggle at the world’s largest miner manufacturer.

Chinese crypto media BlockBeats on Wednesday that since his return in early June, once-exiled co-founder Micree Zhan has halted a Shenzhen subsidiary of the Beijing-based Bitmain from shipping bitcoin miners to its clients.

A China-based mining customer of Bitmain and a Bitmain staffer close to the matter confirmed to CoinDesk the temporary delivery halt at Bitmain’s Shenzhen warehouse.

According to its 2018 initial public offering prospectus, Beijing Bitmain owns a subsidiary called Shenzhen Century Cloud Core Technology, which is responsible for manufacturing and packaging its bitcoin miners at a warehouse for delivery and pick-ups. Despite his ouster from the parent company in October, Zhan remains a director at the Shenzhen subsidiary. 

While it remains to be seen how this internal struggle will affect customers in the long term, some have raised concerns, casting doubts on the business outlook of the .

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