According to the notice of the Changle district court, located in the Chinese province of Fujian, Bitmain co-founder Mikri Zhang filed another lawsuit in an attempt to regain control of the mining company.
The lawsuit is filed against Bitmain’s subsidiaries Fujian Zhanhua Intelligence Technologies and Beijing Bitmain Technologies as Related third-party organizations. The hearing was scheduled for February 11, but it did not take place due to the active spread of the coronavirus. The court noted that the case involved “a dispute regarding the confirmation of the qualifications of shareholders.”
The same court sided with Zhang in December last year, approving the petition for the protection of its assets. The full text of the decision was published only last Thursday. It was decided to freeze 36% of Fujian Zhanhua’s shares in a Bitmain-owned stake worth 10 million yuan ($1.44 million). Zhang owns 36% of Bitmain Technologies Holding, which means that he also owns 36% in The company’s subsidiary structure. The value of assets may seem insignificant for Bitmain, but first of all, it is worth paying attention to Zhang’s impressive ownership share in the parent company.
It is interesting that Zhang went to court in Fujian, and not in Beijing, where the company’s main legal entity is located in China. This may indicate that he has chosen a certain strategy to regain control of Bitmain and has already begun to implement it. He is still the legal representative of Fujian Zhanhua, one of the four divisions of Bitmain that generates the most revenue for The company. It is a sales center for cryptocurrency mining equipment in China.
In December, Zhang turned
to court in the Cayman Islands, where Bitmain’s parent company is located. He asked to cancel the decision of the shareholders, according to which his powers were significantly reduced. His lawyers claim that Zhang did not know about the shareholders ‘ meeting at which his rights in the company were restricted.