The world’s two largest bitcoin mining equipment makers are experiencing contrasting fortunes, with turmoil at market leader Bitmain Technologies Inc. while rival Canaan Creative went public with its initial public offering plans.

At Bitmain, the trouble comes from the top. Co-founder and Executive Director Micree Ketuan Zhan was ousted from the company Tuesday by Jihan Wu, the company’s other co-founder and current chairman.

The reasoning behind the move is not known, but it would appear to be serious. “Bitmain staff shall no longer take any direction from Zhan, or participate in any meeting organized by Zhan,” staff was warned in an email. “Bitmain may, based on the situation, consider terminating employment contracts of those who violate this note.”

Making the matter even stranger, Zhan is believed to be Bitmain’s biggest shareholder, with a 60% stake in the company, according to Coin Telegraph. Dovey Wan, the founding partner of cryptocurrency investment firm Primitive Crypto, claimed that Wu told employees he intended to take control in order to improve Bitmain’s waning share of the bitcoin mining pie, describing Zhan’s ouster as a coup.

The contrast with rival Canaan is huge. Both companies had previously planned to go public but delayed plans after the crash of bitcoin in 2018. Bitcoin’s price has once again risen, improving the cash flow of both, but Canaan is the company that has bounced back the strongest.

After rumors that it had secretly filed for an IPO in July, Canaan went public with its plans on Monday.

The company is seeking to raise money on the Nasdaq exchange, with the filing showing a placeholder figure of $400 million. The final amount of the intended raise, valuation and price per share has not yet been decided, Coindesk reported. The company is reported to be valued at around $2 billion to $3 billion.

For the first six months of the year, the company reported a loss of $45.8 million on net revenue of $42.1 million, compared with a $25 million profit and net revenue of $275 million in the first half of 2018. Net income for the entire year is expected to come in at $8.3 million on net revenue of $394 million. The contrast between 2018 and 2019 is thanks to the collapse in the mining rig market in the second half of 2018 and its steady recovery since.

Bitmain, its management troubles aside, may look once again to going public as well, with reports circulating that it may eventually follow Canaan with a U.S. listing.

Photo: Marco Verch/Flickr