- Micree Zhan stated that the layoff could be suicidal for Bitmain.
- He suggests Bitmain expand into machine learning and Artificial Intelligence.
Following a major power struggle, Bitmain co-founder Micree Zhan was removed from the company back in October 2019. Having called his removal “illegal,” he still is Bitmain’s largest shareholder. With plans to lay off 50% of its workforce, the firm is struggling to reinvent itself in 2020. Zhan, who expressed his concern over this plan, said that this could be suicidal for Bitmain.
Zhan’s letter noted his claim that the math doesn’t add up for the layoff, and that it would destroy Bitmain’s long-term visibility as a firm, if implemented. He also stated that employee cost, in relation to the firm’s profitability, isn’t that high. He recommends Bitmain to branch out into other areas like machine learning and Artificial Intelligence (AI).
Bitmain has chosen to double down on the hyper-competitive mining industry, which is resulting in lower returns. Zhan believes that this could make the company irrelevant. Bitmain has refused to go public many times, which gave way to a class-action lawsuit against the company back in March.
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