Bitmain: The Rise, Challenges, and Evolution of a Cryptocurrency Mining Giant

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Bitmain Technologies Ltd., commonly known as Bitmain, is a pioneering semiconductor company headquartered in Beijing, China. Founded in 2013 by Wu Jihan and Zhan Ketuan, the company has played a defining role in shaping the global cryptocurrency mining industry. Specializing in the design of Application-Specific Integrated Circuits (ASICs) for digital currencies, Bitmain quickly rose to prominence as the world’s leading manufacturer of mining hardware. Over time, it expanded into artificial intelligence (AI) chips and cloud mining services, positioning itself at the intersection of blockchain innovation and high-performance computing.

This article explores Bitmain’s journey—from its groundbreaking product launches and market dominance to internal conflicts, regulatory challenges, and strategic pivots—while highlighting its ongoing influence in the tech and crypto ecosystems.

Founding and Early Innovations

Bitmain was co-founded in 2013 by Wu Jihan, a financial analyst and early Bitcoin advocate, and Zhan Ketuan, an entrepreneur with a background in IP networking. Recognizing the growing demand for efficient mining equipment, they launched the ANTMINER S1, their first ASIC-based mining rig, later that year. With a hash rate of 180 GH/s, the S1 outperformed existing GPU miners and set a new standard for energy efficiency.

The company followed up quickly with the ANTMINER S2, achieving a hash rate of 1 TH/s within months. These early successes established Bitmain as a dominant force in the mining hardware market, enabling large-scale mining operations worldwide.

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Market Dominance and Financial Success

By 2018, Bitmain had solidified its status as the largest Bitcoin mining ASIC designer globally. That year, the company reported a staggering $742.7 million in net profit during the first half alone**, with annual revenues reaching approximately **$2.5 billion in 2017. Its success attracted major investors, including Sequoia Capital and IDG Capital, which injected $50 million into the company in 2017 to support its expansion into AI chip development.

Bitmain also operated two of the most powerful mining pools: BTC.com and ANTPOOL. As of recent data, ANTPOOL controls around 10.57% of the total Bitcoin network hashrate and nearly 38.37% of the Bitcoin Cash network, underscoring its continued influence in blockchain consensus mechanisms.

In addition to hardware, Bitmain offered cloud mining services through its subsidiary Hashnest, which served over 400,000 users at its peak—providing accessible entry points for individuals without technical infrastructure.

Strategic Expansion into Artificial Intelligence

Leveraging its expertise in high-efficiency chip design, Bitmain began developing AI-focused processors under the Sophon brand. The move aligned with China’s national strategy to lead in AI innovation and reduced reliance on foreign semiconductor technology.

Despite initial momentum, the AI division faced internal resistance during leadership disputes between Wu and Zhan. However, Bitmain maintained its commitment to dual-track innovation—balancing cryptocurrency mining with next-generation computing technologies.

Leadership Conflict and Corporate Split

One of the most turbulent chapters in Bitmain’s history unfolded between 2019 and 2021, marked by a bitter power struggle between its co-founders.

In October 2019, Wu Jihan, then chairman of the board, abruptly removed Zhan Ketuan from all executive positions and changed the company’s legal representative in official registrations. Zhan fought back legally and physically—reclaiming control of office premises and initiating administrative reviews. The conflict escalated into what became known as the “battle for the business license,” drawing widespread media attention.

After nearly two years of legal battles and operational disruptions, both parties reached a settlement in January 2021. Under the agreement:

This corporate split significantly impacted Bitmain’s valuation, dropping from an estimated **$8–9 billion in 2021** down from a peak of $800 billion RMB (~$120 billion) during its unicorn days.

FAQ: Frequently Asked Questions

Q: Why did Bitmain split into two companies?
A: Due to an irreconcilable leadership dispute between co-founders Wu Jihan and Zhan Ketuan, Bitmain was restructured to allow both parties to independently manage separate entities—Zhan retained Bitmain, while Wu led the newly formed Bitdeer.

Q: Is Bitmain still involved in cryptocurrency mining?
A: Yes. Bitmain continues to design and manufacture ASIC miners like the ANTMINER S19 series and operates major mining pools such as ANTPOOL and BTC.com.

Q: What happened to Bitmain’s IPO plans?
A: Bitmain filed for an IPO in Hong Kong in 2018 but withdrew due to market volatility and internal governance issues. No active public listing has occurred since.

Regulatory Challenges and Operational Shifts

In June 2021, following China’s sweeping crackdown on cryptocurrency mining and trading activities, Bitmain suspended its global spot sales of mining equipment to manage inventory pressure and comply with shifting regulations.

The policy shift prompted Bitmain to close several international offices—including locations in Israel, the Netherlands, and a major mining facility in Texas, USA—as part of broader restructuring efforts focused on cost optimization and strategic realignment.

Despite these setbacks, Bitmain remained active in research and development. In June 2020, it sold 17,595 units of S19 ANTMINERS to Core Scientific, one of North America’s largest mining firms—demonstrating ongoing demand for its high-performance hardware.

Philanthropy and Academic Partnerships

Beyond business operations, Bitmain has invested heavily in academic research and technological advancement through donations:

These initiatives reflect a long-term vision of fostering innovation beyond immediate commercial interests.

Sanctions on Subsidiary: The Sophgo Incident

In January 2025, Bitmain’s subsidiary Sophgo Technology (算能科技) was added to the U.S. Department of Commerce’s Entity List for allegedly violating export controls by facilitating the transfer of advanced TSMC-made chips to mainland China.

This action followed reports from TechInsights, which found TSMC-produced components inside Huawei’s Ascend 910B AI chip—components matching designs linked to Sophgo. While Sophgo denied any direct or indirect collaboration with Huawei, citing compliance with international regulations, TSMC reportedly halted shipments to Sophgo after confirmation of potential misuse.

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Global Recognition and Industry Standing

Despite turbulence, Bitmain earned consistent recognition as a top-tier tech innovator:

These accolades affirm Bitmain’s resilience and technological leadership even amid intense competition from rivals like Canaan Creative and MicroBT.

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Conclusion

Bitmain's story is emblematic of the rapid evolution of blockchain technology—from niche cryptographic experiments to multi-billion-dollar industries shaped by engineering excellence, geopolitical tensions, and entrepreneurial ambition.

While facing internal strife, regulatory hurdles, and international scrutiny, Bitmain continues to innovate through product development, academic partnerships, and strategic adaptation. Whether navigating halving cycles or advancing AI integration, Bitmain remains a key player in the future of decentralized computing.

As the digital economy evolves, companies like Bitmain will remain central—not just as hardware providers but as architects of foundational infrastructure powering tomorrow’s decentralized world.

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