Bitcoin Cash saw a notable increase of around 10% today and it is trading at around $287 at the time of this writing. The increase coincides with major news coming from the field, as Jihan Wu sent out a staff email, announcing that Micree Ketuan Zhan, co-founder and executive director at Bitmain, is ousted.
Jihan Wu Making A Comeback
Back in March this year, following the failed IPO of Bitmain, Jihan Wu stepped down as co-CEO of the company and his partner, Micree Ketuan Zhan, assumed control.
However, Wu appears to have made a comeback, as he has reportedly sent an email to all staff members, announcing that Zhan is ousted.
“Bitmain’s co-founder, chairman, legal representative, and executive director Jihan Wu has decided to dismiss all roles of Ketuan Zhan, effective immediately. Any Bitmain staff shall no longer take any direction from Zhan, or participate in any meeting organized by Zhan. Bitmain may based on the situation, consider terminating employment contracts of those who violate this note.” – Reads the letter.
There is no further information on the matter at the time of this writing. It remains unclear how the Board of the company reached the decision to oust Zhan.
It’s also worth noting that this comes exactly a day after one of Bitmain’s major competitors, Canaan Inc., filed for an initial public offering (IPO) in the U.S. Its offering size is set at $400 million.
Bitcoin Cash Spikes On The News
The price of Bitcoin Cash (BCH) seems to have reacted to the news, as it gained 10% immediately after. The cryptocurrency now trades at around $287 and sits on a total market cap of around $5.2 billion.
Back in August 2018, a report by BitMEX Research revealed that Bitmain spent around 70% of its operating cash flow from 2017 on buying Bitcoin Cash (BCH). Back then, the company was under the management of Jihan Wu.
Going further, back at the time Bitmain had filed for an IPO in Hong Kong, which later failed. Researchers also add that:
“Once the company goes public, capital allocation decisions in this volatile and unpredictable market will be difficult enough, letting emotions impact too many investment decisions may not be tolerated.”
In January this year, Jihan Wu was replaced as the CEO of the company by Haichao Wang who was the Engineering Director back at the time. This power rotation followed the obvious failure of the Bitcoin Cash play, which brought serious losses to the company.
Now that Wu is reportedly stepping back, it would be interesting to see the direction that Bitmain will take and its overall impact on the market.