Former Bitmain Employees May Find Refuge in a Spinoff Startup Called Matrix

According to regional reports, members of Bitmain Technologies and other connected subsidiaries like Copernicus are starting an offshoot company called Matrix. It is not officially known yet just what Matrix will do but some sources allege that the new spinoff will offer cryptocurrency lending services, an over-the-counter (OTC) desk, and custody solutions.

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Former Bitmain Employees and Copernicus Members Possibly Forming a Startup Called Matrix

There’s been a lot of changes within the cryptocurrency industry and one of the world’s largest mining manufacturers, Bitmain, has seen its share. Reports have detailed that the falling cryptocurrency economy has caused the company to lay off certain members of the team and close down offices in Israel and Amsterdam. On Jan. 10, news.Bitcoin.com reported on Bitmain’s director of product engineering, Haichao Wang, apparently taking the lead role with the mining corporation in place of Jihan Wu. Now a few different reports from local sources and people familiar with the matter suggest that Wu and a bunch of other Bitmain staffers are forming a new startup called Matrix.

Chinese news outlet All Weather Tmt (AWT) details that Matrix may be led by Bitmain’s Ge Yuezhen and former members of Copernicus. The regional publication details that Jihan Wu will be working on the project as well. The Bitmain branch Copernicus was known for creating a Golang-based Bitcoin Cash (BCH) full node implementation with the same name. Last year, miners using the Copernicus software also managed to mine the first BCH block with an alternative full node protocol designed with the Golang programming language. Allegedly Bitmain’s senior investment director Ge Yuezhen will be the new company’s chief executive officer.

Lending, OTC, and Custody Services

The publication additionally details that there have been internal arguments concerning two technologies Bitmain has been pursuing — artificial intelligence (AI) and blockchain technology. AWT explains that senior Bitmain executives disagree on the future of both technologies and which one will be the best choice for the firm going forward. According to the publication, Jihan Wu is responsible for BCH business, blockchain projects, and the mining pool. Meanwhile, Micree Zhan reportedly oversees the AI chip operations, mining semiconductors, and some mining facilities. Furthermore, news outlets Caijing and South China Morning Post reported that Wu was leaving Bitmain but AWT says that information is false. “Wu’s departure from Bitmain is purely a rumor,” the report emphasized but added Wu will superintend the Matrix project from the sidelines.

Another source explains on March 7 that the new business spinoff will offer over-the-counter cryptocurrency services. Furthermore, journalist Wolfie Zhao revealed that two individuals close to the startup remarked that the Bitmain offshoot will also handle crypto lending and custody services. The report also details that there were “two camps inside Bitmain,” each aligned with different cofounders, further confirming AWT’s report on the disagreements.

Over the last year, there have been lots of stories surrounding Bitmain as it made significant profits in 2017 pulling in an estimated $4 billion in revenue. Then the company filed for an initial public offering (IPO) in Hong Kong. However, 2018 was a severe downward spiral for the entire industry and, being one of the most successful cryptocurrency firms the year before, Bitmain was hit with an onslaught of bad press. The trend of Bitmain-related headlines continued through the BCH blockchain split in November and into the new year. Whether it’s positive or negative news, it could be argued that the Chinese mining giant receives a lot more press than most companies in the industry. The Matrix spinoff news has added one more unconfirmed tale from sources claiming to be close to the action.

What do you think about Bitmain possibly creating an offshoot startup called Matrix? Let us know what you think about this subject in the comments section below.

Image credits: Shutterstock, Pixabay, and Bitmain.

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Jamie Redman

Jamie Redman is a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open source code, and decentralized applications. Redman has written thousands of articles for news.Bitcoin.com about the disruptive protocols emerging today.