Jihan Wu, erstwhile CEO of crypto mining hardware producer, Bitmain, set up a new company after leaving the latter in January. Wu left in the wake of a controversy that ensued between himself and Bitmain’s other co-founder, Micree Zhan over controlling the firm. However, Wu has been able to take Matrixport, his new venture to a unicorn level within a short while.
Wu became a household name after establishing Bitmain Technologies with his former partner, Zhan back in 2013. Until his exit, Bitmain was yet to conduct an Initial Public Offering (IPO), though it was one of Wu’s top priorities. Then, Wu claimed that an IPO would be the most suitable means for investors to profit from their investments. As of 2019, Bitmain was valued at $12 billion.
Jihan Wu’s Matrixport Valued at $1 Billion
The former Bitmain CEO has shown his expertise in a second crypto venture by raising capital to give the firm a valuation of $1 billion. Wu’s Matrixport received funding of more than $100 million from various institutional investors, including K3 Ventures, C Ventures, DST Global and Tiger Global. Matrixport tries to adopt a traditional finance-like system for the crypto sector.
Matrixport manages the assets and investments of high-profile investors’ who are looking to adopt a vast investment strategy. As reported by the crypto asset management firm in March, it has more than $10 billion worth of investors’ assets in its custody. According to reports, it plans to apply for an IPO in the next few years as an exit strategy for investors.
Wu’s time at the former company he co-founded was rife with a power duel with his co-founder. Two applications for an IPO by Bitmain in Canada and another country had been rejected both in 2019 and 2020. However, Wu took an seemingly honourable path by resigning as the CEO. Until he left to found Matrixport, Bitmain was yet to get an IPO approved.
Matrixport Generates $8 Million Revenue in 2020
As of 2020, Matrixport pooled between $7 and $8 million as revenue. During an interview, Jihan Wu cited the harsh policies against emerging technologies in the crypto space and noted that it was necessary to root out ‘bad actors in the space’ and refine its reputation. Matrixport offers a wide range of crypto/USD pairs including BTC/USDT
Meanwhile, Bitmain recently broke out from his mining partner, AntPool, regarded as the largest mining pool. Following its unsuccessful attempts at an IPO, the crypto mining hardware manufacturer argued that the divestment or demerger was necessary in light of China’s mining ban. Bitmain believes that mining regulations are the bane of its IPO applications.
Bitmain noted that it will be sticking to its crypto mining hardware manufacturing business, and would give an IPO a shot again. Besides, its current CEO has assured shareholders of leading the firm to an IPO. Coinbase set the pace for IPO applications from crypto-based firms with an approval from US regulators and an eventual listing on NASDAQ.