Ex-Bitmain CEO Jihan Wu Set to Launch Crypto OTC Platform Next Month: Report

Published at: June 5, 2019

Ex-Bitmain CEO Jihan Wu could launch his newest venture next month, according to a report by The Block on June 5.

One unnamed source told the website that the crypto services startup, called Matrix, “will be the biggest over-the-counter (OTC) desk and asset manager overnight.”

Matrix’s OTC offering is likely to be boosted by its close ties to bitcoin (BTC) mining company, Bitmain. The new business will reportedly offer custody and lending services to the Beijing-based giant, receiving a liquid pool in return.

Another of the four unnamed sources told The Block that such high levels of liquidity could result in lower crypto prices, giving Matrix a competitive advantage in Asia.

The Block notes that speculation remains over whether Wu will serve as chairman or CEO of the new company — as well as over whether Matrix would be allowed to operate in China, which has a history of clamping down on the cryptocurrency industry and crypto trading.

Last November, Wu was reportedly demoted from being a “director” at Bitmain to a “supervisor.”

Bitmain is one of the biggest players in the cryptocurrency industry due to its huge mining capabilities, and Wu continues to hold a 20.5% stake in the business.

Tags
Otc
Related Posts
Bitmain stops shipment of Antminer crypto mining rigs into China
Bitmain, a Chinese manufacturer of cryptocurrency mining equipment, has been forced to stop its business in China from Oct. 11 following the crypto ban imposed by local authorities. In addition to China’s blanket ban on crypto operations, the company has attributed the move to stop shipping Bitcoin (BTC) and cryptocurrency mining rigs as a response to China’s carbon-neutral policies. According to Bitmain’s announcement: “From October 11, 2021, Antminer will stop shipping to mainland China. For customers in mainland China who have purchased long-term products, our staff will contact them to provide alternative solutions.” While the company has yet to reveal …
Bitcoin / Oct. 10, 2021
Bitmain Shifting IPO Plans to the US on Growing Bitcoin Optimism
Chinese cryptocurrency mining giant Bitmain is revisiting plans for an initial public offering (IPO,) Bloomberg reported on June 21. The company had filed to list an IPO on the Hong Kong Stock Exchange, but the application expired on March 26. Now, Bitmain is reportedly planning to file listing documents with the United States Security and Exchange Commission, potentially paving the way for a share sale to take place later this year. While the company was hoping to raise $3 billion from its planned Hong Kong IPO, the Bloomberg report suggested that this fundraising target will be reduced to between $300 …
Bitcoin / June 21, 2019
Bitmain Files Draft Application for Listing on Hong Kong Stock Exchange
Chinese crypto mining giant Bitmain has filed a draft application for listing the company’s shares on the Hong Kong Stock Exchange (HKEX), according to an official application document published Wednesday, September 26. Bitmain has provided a draft application proof that is required for public listing on the HKEX, aiming “solely” to disclose information to the public in Hong Kong, and “not for any other purposes.” By providing a detailed business overview, Bitmain has stressed that the application proof is represented in a draft form, as it is a subject to future elaborations due to its incomplete status. In the application’s …
Bitcoin / Sept. 26, 2018
OTC crypto shops flood Hong Kong, but regulations may impact their presence
Hong Kong, one of the most significant and leading financial centers in the world, has played a large role in the development of cryptocurrencies. For instance, the Chinese territory has birthed some of the most established and successful crypto companies to date including the crypto derivatives exchange FTX, along with the digital asset platform Crypto.com. Yet, as trillions of dollars are traded regularly through crypto exchanges founded in Hong Kong, the “Vertical City” also contains an abundance of physical over-the-counter crypto shops as well. Henri Arslanian, PwC crypto lead and former chairman of the Fintech Association of Hong Kong, told …
Bitcoin / Oct. 24, 2021
Chinese Officials Support Renewable Energy-Powered Cryptocurrency Mining
Chinese officials from the city of Ya’an in Sichuan have come out in support of using locally produced hydropower for cryptocurrency mining operations. On April 20 the Municipal Economic and Information Bureau and the Municipal Development and Reform Commission of Ya’an announced an opinion statement on local crypto mining implementation. The document encourages the consumption of hydropower-generated electricity for mining operations. The document stated that the municipality will build a "hydropower consumption demonstration zone" and "big data industry gathering area." Officials believe the province will thus attract investment and development in blockchain companies. Cryptocurrency mining in China China is known …
Bitcoin / April 28, 2020