One of the leading manufacturers of Bitcoin mining equipment could be experiencing internal turmoil. Is about Canaan Creatives, which would have displaced four of its directors.
If this situation is true, it could add more problems to the firm of Chinese origin. The four senior managers were unexpectedly removed from the company’s company registry. This has generated speculation about possible internal problems.
Canaan Creatives and Ebang, are currently the only two manufacturers of Bitcoin mining equipment listed on the New York Stock Exchange. It should be noted that both have presented problems to raise their prices on Nasdaq.
How did you get to this point at Canaan Creatives?
The company, in previous updates to its registry, had high-ranking officials who are now gone. In this case, it’s about the co-chair, Jianping Kong, the founder and chief financial officer Jiaxuan Li, the non-executive director, Qifeng Sun and the director of public affairs Songhua You.
These four high-level officials have all been removed from the most recent update of the company’s record. Now, Bitcoin mining equipment maker Canaan Creatives has a single director, this is Nangeng Zhang.
The title of the latter official has changed on the ASIC manufacturer’s personnel grid. Zhang is now a general generative and executive director. Previously, he held the positions of president and general manager.
Bitmain’s problems are contagious
It should be borne in mind that, according to information, the company is going through a “devastating moment”. Internal disputes between Zhang, who has his epicenter of strength in Beijing, on the one hand, and the directors of the company’s headquarters in Hangzhou, on the other, are reaching a climax.
According to the CoinDesk portal, there is no clarity about the reasons for the dispute, but it is believed that the long-term strategy of the mining equipment manufacturer Bitcoin, could be the reason. This fact could turn into a catastrophe for Canaan Creatives.
The other case that can be taken as a reference is that of the company Bitmain. In the same, similar problems have caused a sudden drop in the company, which has made it lose weight in the market in the face of the strong threat posed by competition from the powerful MicroBT.
Problems that add more problems
Canaan Creatives’ problems with sales of its Bitcoin mining machines have been notable. According to their own reports, the losses in 2019 were almost $ 150 million dollars. While, in the first quarter of 2020, they were $ 5.6 million.
Likewise, another of the company’s problems is the bad moment that its quotations in Nasdaq are going through. From May 14, immediately after Halving, they began to fall in a crash. For weeks now, the value of these quotes has been below $ 2.
Canaan Creatives is in the select group of the top five companies in the ASIC equipment market. Currently, almost all of these firms are experiencing problems, both in sales, Bitmain and Innosilicon, and in both sales and stock, Canaan Creatives and Ebang.
The only one of these giant companies that seems to be going through a hot streak is the aforementioned MicroBT. This firm has a good position in the market and its Bitcoin mining equipment has been highly competitive and with an efficiency only matched by Bitmain’s.
Data to consider
- Nangeng Zhang, who is currently the only visible head on the board of Bitcoin mining device maker Canaan Creatives, joined the board in 2015 as CEO.
- According to company records, all of these changes were made on July 6.
- Like Canaan Creatives, the other ASIC manufacturer Bitmain is going through turbulent internal disputes between Micree Zhan and Jihan Wu.
- Canaan Creatives’ quotes on Nasdaq have not raised their heads since May’s Halving. The same, at the time of writing are located at $ 1.86.
The information in this content has been extracted from reliable sources detailed below:
1- Professional handling of content by the authors of CriptoTendencia.
2- External sources: CoinDesk.com, qixin.com, api3.cls.cn, investing.com and Canaan-creative.com.