As detailed in previous articles on Crypto.IQ, Bitmain Co-Founders Micree Zhan and Jihan Wu have been locked into an epic battle over control of Bitmain, and it seems to be a stalemate with both sides trading blows. Ultimately, neither Co-Founder is winning, and it looks like the end result of this battle will be the destruction of Bitmain.
Indeed, Bitmain just announced that all mining rig orders have been delayed by 3 months. Literally, customers who already paid and were expecting delivery in June or July now have to wait until September or October to get their rigs.
Further, even if a customer waits that long for delivery, it seems possible that there will just be another delay due to the disarrayed nature of Bitmain. Essentially, the only thing that is certain is that Bitmain is in such bad shape that they cannot manufacture rigs on time.
Bitmain gave some options to customers who have been hit with this delay, but the options are terrible. Customers can either choose to receive a voucher for the amount of money their rig would have mined, but that voucher can only be used to buy more rigs at Bitmain. The other option is customers can get a full refund, but only if they request a refund in writing and then wait 60 days, and if the rig is shipped on the 59th day then they don’t get a refund.
It is clear that this mess at Bitmain will cause them to lose most of their customer base. This is bad news for Bitmain, but a golden opportunity for competitors like MicroBT and Canaan.
Indeed, the Global Business Director of F2Pool suggests that Bitcoin (BTC) miners look elsewhere for their mining rig needs.
This advice is especially wise since it seems conditions at Bitmain are only deteriorating, and there is no indication that either of the Co-Founders will ever win full control of the company.
Zooming out, Bitmain was king of the crypto mining world for many years, but now it appears the king has fallen, giving the opportunity for other crypto mining manufacturers to rise to dominance.