Bitcoin Cash Increases 10% As Bitmain CEO Comes Back To Position

Bitcoin Cash increases by 10 percent as the Jihan Wu, the ex-CEO of Bitmain, announced he will be taking back the position in the company. Let’s catch up on our Bitcoin Cash news today.

The altcoin was trading at around $287 when the news emerged which obviously coincided after Jihan Wu sent out a staff email where he announces that Micree Ketuan Zhan, the co-founder and executive director of Bitmain, has officially been ousted.

Back in March this year, Bitmain had its IPO fail and Jihan Wu stepped down as the CEO of the company so his partner Micree Ketuan Zhan took over. However, Wu appears to have made a comeback ever since as he has reportedly sent an email announcing that Zhan has been 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.”

No further information has been provided since and it still remains unclear how the company’s board reached this decision to Zhan. The decision only came a day after one of the major competitors of Bitmain, Canaan Inc, filed for an initial public offering in the United States and its now offering size is set at $400 million. The price of Bitcoin Cash increased right after the news as it rose by 10 percent immediately afterward. The cryptocurrency is trading at around $287 and has a market cap of around $5.2 billion.

Back in August 2018, a report from BitMEX Research revealed that Bitmain spent more than 70 percent of its operating cash flow from 2017 to purchase Bitcoin Cash. At that time, the company was under the management of Jihan Wu. At that time, Bitmain filed for an IPO in Hong Kong which failed later and the researchers noted:

“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.”