Based on a recent report, Wu Jihan, the former CEO and co-founder of Bitmain, the largest bitcoin (BTC) mining hardware providers have now unveiled a crypto trading platform with over-the-counter (OTC) trading, custody, and lending feature.
The startup which is referred to as Matrixport is located in Singapore and has reportedly employed many of Bitmain’s former staffs which were previously sacked due to the bearish nature of the market in 2018.
Matrixport Have Heavy Pocket Backers
Ge Yuesheng, the CEO of Matrixport and Bitmain shareholder revealed that although Wu is a major shareholder in Matrixport, some global venture capital firms like Bitmain itself are investors in the company.
He then continued by stating that the firm will give an official announcement regarding the details of the company’s funding later on.
The news comes after some reports that Bitmain is in the process of renewing its plans for an initial public offering (IPO) in the second quarter of 2019. Bitmain is reportedly expected to raise nearly $300 million to $500 million in an IPO in the US later on in the year.
Bitmain firstly planned to conduct an IPO in Hong Kong but it didn’t come into fruition because its application with the Hong Kong Stock Exchange expired in March 2019. Prior to the IPO, a false and potentially misleading language was discovered in Bitmain’s IPO investor deck.
Another report revealed that the company lost $500 million in the third quarter of 2018.
Furthermore, Bitmain was established in Beijing in 2013 by Micree Zhan Ketuan and Jihan Wu who before starting the joint venture was a private equity fund manager with a degree in economics and psychology from Peking University, while Zhan, a graduate of the Chinese Academy of Sciences, was managing a television-streaming company.
Wu invested all of his life savings into the Bitcoin (BTC) after he discovered it, and the increase in the price of the digital currency in 2013 made him decide to not only use it to trade but to also find an efficient way to generate it.