Wu Jihan exits with $600 million, ending internal strife at Bitmain

After more than two years of intense confrontation, the dispute between the founders of Bitmain(Bitmain) finally reached a turning point. Co-founder Wu Jihan officially announced via encrypted message that he had reached a settlement with another co-founder, Jihan Zhan. This internal struggle, which once shocked the entire cryptocurrency industry, has now come to an end. This not only has a significant impact on Wu Jihan’s future direction but also will reshape the competitive landscape of the entire mining machine industry.

This settlement has brought substantial changes to all parties involved. As an observer, there is no longer a need to continuously follow the internal company conflicts; as a miner, the stability of mining machine delivery and the clarity of the company's core entity can finally be confirmed; as an employee of Bitmain, there is no need to struggle with conflicting directives from the two founders; as an investor, the clarification of corporate governance structure and the prospects for going public are now visible. In short, this settlement injects new vitality into the billion-dollar mining giant Bitmain.

Wu Jihan’s Strategic Exit: What Did 600 Million USD Buy?

Wu Jihan’s departure was as symbolic as ever. On January 26, 2026, Wu Jihan posted an encrypted message on Twitter. After being decrypted by technical personnel, he announced the final outcome of the dispute: Jihan Zhan repurchased nearly half of Bitmain’s shares held by Wu Jihan and his supporting shareholders for 600 million USD. As a result, Wu Jihan officially resigned as CEO and Chairman on the same day.

The core terms of this agreement are quite detailed. To complete the share repurchase, Jihan Zhan obtained a 400 million USD internal loan from Bitmain and committed to raising an additional 200 million USD through external financing. According to the resignation letter, as of January 25, Bitmain had a cash reserve of 327 million USD, with a short-term liquidity gap of 92 million USD, and the overall financial situation remained stable.

In addition to the equity transfer, the agreement also involved a business split. According to the settlement plan, BitDeer and its US and Norway mining operations will be separated from Bitmain and become independent entities. Wu Jihan will serve as Chairman of BitDeer, with Matt Kong appointed as CEO. Antpool(Antpool) will be spun off into an independent company led by Jihan Zhan. Furthermore, Wu Jihan is expected to gain operational rights to Bitmain’s overseas mining farms and BTC.COM mining pool, along with the previously spun-off crypto financial platform Matrixport.

From a financial perspective, whether Wu Jihan suffered a loss remains open for discussion. According to Bitmain’s September 2018 prospectus, Jihan Zhan held 36% of shares as the largest shareholder, while Wu Jihan held 25.25%. Including other supporting shareholders, Wu Jihan’s total shareholding was approximately 40.59%. Selling nearly half of the shares equates to relinquishing about 15%-20% of the company’s equity. According to the Hurun rankings, Bitmain was valued between 4 and 5 billion USD at that time. Some analysts estimate Wu Jihan’s stake to be worth around 1 billion USD. The 600 million USD repurchase plus the business split may seem like a discount on the surface, but it reflects Wu Jihan’s prioritization of company stability and industry development over personal gain.

More importantly, Wu Jihan stated in his letter that this agreement would make Bitmain’s business model clearer and more transparent, aiding the IPO process. After the adjustment, the number of shares held by Series B and B+ investors doubled, and profit prospects became more apparent. From the announcement of the settlement to going public, Bitmain’s board will consist of five members, with Jihan Zhan able to appoint three and Wu Jihan retaining two appointment rights. The company also invited founding member Zhu Xiang and CFO Liu Jianchun, who has served for five years, to join the board to ensure the professionalism of independent directors.

At the end of the letter, Wu Jihan expressed blessings and good wishes to Jihan Zhan, reminiscent of their tearful moment at the 2019 annual meeting. After years of confrontation and twists, they finally arrived at a moment of mutual understanding and smiles. Wu Jihan wrote at the end: “After today’s agreement, Bitmain will undoubtedly turn a new page. As a co-founder, I have enjoyed 2,815 days of journey, received sincere help from many clients, colleagues, friends, and investors, and I send my best wishes to Jihan Zhan and the leadership of Bitmain.”

The dual encrypted signatures at the beginning and end of the message seem to pay homage to Bitcoin’s double SHA-256 algorithm, much like Elon Musk’s heartfelt inscription “Of Course I Still Love You” on the rocket recovery ship. Wu Jihan’s expression of affection for Bitcoin, mining industry, and years of entrepreneurial struggle reflects his deep attachment.

From Coup to Reconciliation: A Brief History of Bitmain’s Three-Year Internal Struggle

The roots of this internal conflict trace back to October 2019. At that time, Wu Jihan launched a “coup” by changing the legal representative of Beijing Bitmain and dismissing Jihan Zhan, claiming it was “the return of the king.” Wu Jihan, a veteran in the cryptocurrency field, was the Chinese translator of the Bitcoin white paper and an early evangelist. He founded the world’s largest Bitcoin mining empire and promoted BCH independence, thus enjoying good connections both inside and outside the industry. The coup was widely regarded as a return to the peak for crypto industry leaders.

However, subsequent complex internal disputes and public confrontations tarnished both sides’ reputations. Jihan Zhan later returned to the company, with countermeasures escalating. The two sides began to control different areas: Jihan Zhan controlled the Shenzhen production line, while Wu Jihan held the financial power. This led to a deadlock—Jihan Zhan lacked funds to place orders for mining machines, while Wu Jihan’s side received payments but could not supply in time.

During this period, the two sides reached a temporary agreement to resume production, maintaining basic operations of Bitmain. More intense conflicts emerged legally: Jihan Zhan filed a lawsuit in the Cayman Islands, accusing Wu Jihan of illegal legal representative changes, and planned to pursue judicial control of the company. Meanwhile, they fought over symbols of authority such as company seals and business licenses. These internal disputes even became major scandals discussed in the business community in 2019. After this settlement, the legal disputes were resolved, and both sides no longer needed to go to court.

Post-Reboot of Bitmain: How Will the Mining Industry Landscape Be Reshaped?

This settlement is crucial for Bitmain’s future development. Most importantly, it clarifies the company’s prospects for going public. If internal conflicts persist, the company could face huge penalty payouts, and more seriously, lose trust from customers and employees, ultimately damaging market competitiveness. The settlement has advanced the process, although it took half a year to finalize, its complexity and necessity are evident.

Jihan Zhan’s future management of the company also attracts attention. Wu Jihan previously criticized management issues under Jihan Zhan. If such issues indeed existed, this resolution will likely lead to adjustments and improvements to consolidate the hard-won control.

For the mining ecosystem, Bitmain’s restructuring and full-scale production are undoubtedly positive signals. Currently, due to rising cryptocurrency prices, mainstream mining machine orders are scheduled for August and September, with upstream chip supply tight, creating industry-wide bottlenecks. With the resolution of internal splits, Bitmain’s trust among upstream chip suppliers is expected to recover and improve. The company can then focus on R&D of next-generation and even more advanced chips. This will have a positive impact on innovation and development in the entire mining machine industry.

For competitors, the awakening of this mining giant, delayed by internal strife for many years, will pose a significant challenge. Once a rapid rise, Bitmain’s thorough internal resolution will make it an important variable in the industry’s future.

Finally, it is worth looking forward to whether the new ventures of Wu Jihan and other founders, along with Jihan Zhan’s leadership of the new Bitmain, can turn this settlement into a truly fundamental solution rather than a temporary patch, allowing Bitmain to once again dominate the billion-dollar cryptocurrency mining industry.