As the third Bitcoin halving approaches—projected for May 11, 2025, at 7:45 PM New York time (May 12, 7:45 AM Beijing time)—the cryptocurrency market is experiencing heightened volatility. According to Michael Maloney, CFO of mining firm Coinmint LLC, the halving will reduce block rewards from 6.25 to 3.125 BTC, marking a pivotal moment in Bitcoin’s economic model.
In the months leading up to this event, Bitcoin surged over 160%, reclaiming the $10,000 mark on May 8. However, just days before the halving, prices plunged by $1,400 within 30 minutes—a 14% drop—highlighting the nervous sentiment among traders and miners alike. Over the final 24 hours before the event, Bitcoin’s price continued to swing dramatically, reflecting uncertainty about post-halving market dynamics.
Historical trends suggest that while Bitcoin prices tend to rise ahead of halvings due to supply scarcity expectations, they often experience short-term corrections afterward. In both 2012 and 2016 halvings, prices initially climbed—by 80x and 20x respectively—but saw pullbacks shortly after. Despite these fluctuations, investor confidence remains strong, driven by long-term bullish narratives around digital scarcity and institutional adoption.
Bitmain's Leadership Crisis Reignites Amid Market Tension
Amid this volatile backdrop, Bitmain—the world’s largest Bitcoin mining hardware manufacturer—is once again embroiled in a high-stakes internal power struggle. On May 8, an extraordinary incident unfolded at the Haidian District Government Service Center in Beijing: former legal representative Jian Xiguang (commonly known as Micree Zhan) was reportedly intercepted while attempting to collect a new business license for Bitmain.
Eyewitness accounts describe a group of unidentified individuals snatching the document directly from administrative staff, preventing Zhan from obtaining it. The dramatic scene sparked widespread speculation online, with some comparing it to the infamous 2020 Dangdang executive dispute involving Li Guoqing.
This confrontation marks a new chapter in the ongoing leadership battle between Zhan and Wu Jihan, Bitmain’s co-founders since its inception in October 2013. Once celebrated as a "dream team" combining technical and business excellence, their partnership has deteriorated into one of the most public corporate feuds in the blockchain industry.
The Rise of a Mining Titan
Bitmain quickly rose to dominance by producing high-efficiency ASIC miners under the Antminer brand and operating BTC.com—one of the world’s largest mining pools. By 2017, the company generated $2.5 billion in revenue with $1.25 billion in net profit, over 90% of which came from mining hardware sales.
Wu Jihan, a Peking University economics graduate, served as the strategic and commercial force behind Bitmain’s global expansion. Meanwhile, Zhan—a microelectronics expert from the Chinese Academy of Sciences—led R&D and brought critical engineering talent to scale chip design operations.
Their combined strengths positioned Bitmain as a top global fabless ASIC designer, earning recognition from Frost & Sullivan and attracting investments from elite firms like IDG Capital, Sequoia China, Coatue Management, and Singapore’s EDBI.
However, internal structural vulnerabilities began surfacing as the company scaled. Unlike peers such as Canaan Creative—which adopted clearer governance models and pursued regulated IPO paths—Bitmain maintained a complex ownership structure where Wu held significant influence without majority equity control.
This imbalance laid the groundwork for future conflict, especially as external pressures mounted.
Divergent Visions: Crypto vs. AI
The core tension between Wu and Zhan stems from differing visions for Bitmain’s future. Wu advocated deepening involvement in the cryptocurrency ecosystem, including support for Bitcoin Cash (BCH), while Zhan pushed for a pivot toward artificial intelligence (AI) chips—a move aligned with long-term semiconductor trends beyond crypto.
During Bitcoin’s bull run in 2017–2018, both strategies coexisted under the “mining-to-AI” funding model: use mining profits to finance AI development. But when the crypto market crashed in 2018, losses from Wu’s BCH investments—reportedly exceeding RMB 3 billion—undermined Bitmain’s financial stability and derailed its Hong Kong IPO plans.
By late 2018, Wu stepped down from all executive roles, leaving Zhan in full control as chairman.
Yet in October 2019, Wu launched a surprise corporate maneuver: during Zhan’s overseas trip, Wu orchestrated a legal restructuring that replaced Zhan as legal representative and executive director of Beijing Bitmain Technologies Ltd. A day later, he issued an internal memo terminating Zhan’s positions across all subsidiaries.
Zhan vowed to reclaim control through legal channels but remained sidelined for over a year under Wu’s leadership—until April 28, 2025, when a key administrative reversal occurred.
Legal Reversal Sets Stage for New Conflict
On that date, the Haidian District Justice Bureau ruled to revoke a January 2 decision that had approved Wu’s appointment as legal representative. While this invalidated part of Wu’s legal standing, it did not automatically restore Zhan’s authority.
In response, Bitmain issued two official statements clarifying that the current legal representative is Liu Luyao, the company’s general manager. It emphasized that corporate documents—including business licenses—are company property and can only be retrieved by authorized personnel.
The company explicitly stated that Zhan holds no official role and lacks authorization to collect any corporate documents. Any attempt to do so constitutes an unlawful act.
Despite these declarations, no further updates have been released by Bitmain. Sources close to the company confirm that internal operations remain stable but decline to comment on governance details.
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FAQ: Understanding Bitmain's Power Struggle and Bitcoin Halving
Q: What is the significance of the Bitcoin halving?
A: Every four years, Bitcoin cuts miner rewards in half to control inflation. This reduces new supply, historically driving price appreciation over time due to scarcity.
Q: How does Bitmain influence the crypto mining industry?
A: As the leading manufacturer of ASIC miners and operator of major mining pools like BTC.com, Bitmain plays a central role in network security and hash rate distribution.
Q: Why hasn’t Zhan regained control despite the administrative ruling?
A: Legal rulings can invalidate procedures but don’t automatically reappoint individuals. Corporate governance requires board resolutions and shareholder approvals beyond administrative decisions.
Q: Could this leadership conflict affect Bitmain’s product development?
A: Prolonged disputes may delay strategic initiatives, particularly in R&D-heavy areas like AI chips or next-gen miners. However, day-to-day operations appear unaffected so far.
Q: Is Bitmain still profitable amid crypto market swings?
A: While exact figures are private post-IPO withdrawal, industry analysts believe strong miner demand ahead of the halving supports healthy margins on hardware sales.
Q: What happens if neither side gains clear control?
A: A prolonged stalemate could lead to arbitration, shareholder lawsuits, or even a potential buyout—common outcomes in founder-led tech firms with ambiguous governance.
Navigating Uncertainty in Crypto Infrastructure
As Bitcoin enters another transformative phase through halving-induced scarcity, foundational players like Bitmain face dual challenges: technological evolution and corporate governance maturity.
The current standoff underscores a broader lesson for blockchain enterprises: visionary founders must build scalable institutions with transparent succession mechanisms. Without them, even market leaders risk becoming casualties of their own success.
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With over eight years of shaping the mining landscape and now navigating one of its most public internal crises, Bitmain remains a bellwether for how crypto-native companies mature—or fracture—under pressure. As investors watch both price charts and boardroom moves, one truth becomes clear: in the world of decentralized money, centralized control battles still matter deeply.