Bitmain denies rumor of "Jack Ma's 1 billion investment" and was once rumored to have an affair with Xiaomi, Tencent and Softbank

On the 4th, a cryptocurrency self-media reported that Jack Ma had reached an investment intention with Bitmain, injecting $1 billion in one go. Subsequently, Bitmain’s official Weibo account posted a message saying that “the news that Jack Ma invested in Bitmain is untrue.” The next day, BCH began to soar. In summary, Xiaomi’s Lei Jun, Tencent, Softbank, Temasek, etc. have all had scandals with Bitmain.

(We media gossip)

(BCH surges)

(Bitmain refutes the rumor)

Tencent and SoftBank were also rumored to be investors in Bitmain. In early August 2018, there were market rumors that Bitmain had officially completed the Pre-IPO round of signings and said that investors in this round included Tencent and SoftBank. Later, both Tencent and SoftBank denied it. However, it is still unknown whether it is really groundless, such as whether there was any communication or discussion during the financing process.

Before the Pre-IPO, Singapore's Temasek also issued a statement denying its involvement in the investment. However, in the final prospectus for Bitmain's listing in Hong Kong, it was shown that Temasek invested US$30 million and US$20 million respectively through its investment companies Palace Investments and Pavilion Capital Fund. Temasek holds a total of 0.35% of Bitmain's shares. In addition to Temasek, EDB Investments, an investment institution under the Singapore Economic Development Board, invested US$14 million and holds a 0.11% stake in Bitmain.

Going back further, in 2017, according to a Paradise Papers exposed by the International Consortium of Investigative Journalists, the two offshore companies controlled by Lei Jun, Colorful Mi Ltd and Red Better Ltd, were linked to two companies controlled by Wu Jihan and Zhan Ketuan (legal representative of Bitmain). Lei Jun responded on Weibo: "Fake! So far, I have never bought Bitcoin, nor invested in Bitcoin mining machine manufacturers."

Wu said that the rumors about Jack Ma’s investment are nonsense, but they are similar to the previous rumors about Tencent’s investment. BAT and other companies have long been integrated into the lifeline of China’s economy. When the government’s attitude towards the cryptocurrency/mining machine industry is unclear, they are unlikely to invest. It can be clearly seen that China’s large Internet companies are deliberately avoiding the cryptocurrency industry in terms of investment.

However, Bitmain is the leader in the cryptocurrency industry, and mining machines are relatively politically safe compared to exchanges. Given the all-encompassing investment logic of companies like Tencent and Alibaba, it would not be surprising if they really make investments when future policies become relatively clear.

Another observation angle is that the current Bitmain trident Wu Jihan, Ge Yuesheng, and Liu Luyao all come from the investment industry and are very capable in fundraising. Bitmain has just optimized its personnel in preparation for the Bitcoin halving and appointed a new AI CEO, indicating that it has not completely given up on AI. It is a reasonable and necessary move to strengthen cash flow reserves through financing, but according to Bitmain's past tradition, it is generally not disclosed to the public unless disclosed in the listing prospectus.

In addition, the former chairman, Zhan Ketuan, is currently suing in the Cayman Islands, trying to restore his original large proportion of voting rights exceeding 50%. It is also worth paying attention to whether Zhan Ketuan’s voting rights or equity can be diluted by introducing external investors.