Sources explained that the two co-founders were usually in a power struggle, both founders of the established organization. The leaders arrived at a resolution that prompted Wu’s resignation. The CEO would leave his seat to implement the solution the parties agreed on fully. When Wu finally resigns, the second founder, Matt Kong, would take his position as the Chief Executive Officer.
The disputes within Bitmain, being one of the largest mining companies globally, brought so much controversy in the space. With new agreements, the crypto space is confident that the mining firm would not face leadership problems based on the parties’ settlements. Power struggles in firms with more than a founder are common, as one of Ripple’s executives resigned from the fintech to reduce leadership disputes similar to this.
Jihan Wu speaks on his resignation
The former CEO announced that he resigned from his post as the firm’s Chairman and Chief Executive Officer and clarified that the settlement had settled the founders’ disputes amicably. When the co-founder made that announcement, it was clear that other preparations were ongoing.
The firm needs a legal filling to change the two executives’ positions while following the agreements. So, for Wu’s resignation to become official, other processes have to take effect.
Following the resolution, Zhan purchased a notable amount of Bitmain’s shares to settle the leadership dispute fully. The co-founder paid Bitsource $600 to own approximately half of the mining firm’s total shares.
Sources claim that the Bitsource account owner is for founding members, with the exited CEO being part owner of the holdings. Zhan searched for various means to source funds to settle the Bitsource holder and equally borrowed money from the Bitmain account.
New arrangement following Wu’s resignation
The founding members agreed to follow a new arrangement to prevent future leadership disputes from arising. The resigned CEO would lead Bitdeer, a firm subsidiary in some parts of Europe and North America. The former chief executive would resume his position as the subsidiary’s Chairperson, and Kong would become its CEO.
One of the firm’s subsidiaries, Antpool, would be a single entity headed by Zhan. Jihan opined that the new arrangement would create a simpler business model to enable it to launch its own ICO, an aspect which it has not been able to handle before the arrangement.
The founders can now appoint new board members, as a part of the settlement, with both founders given slots to make up the board. Zhan was given three places to appoint members he wants, while Wu would get only two, making the needed board members five in number.
With this new settlement, the firm should grow beyond expectations because it is now working with a more manageable model than its previous arrangement. The co-founders now have different administrative duties, meaning that there will be a clear and streamlined path in which they can perform their functions without depriving each other of leadership rights.