Bitmain sent an internal letter: Focus on computing chips to make the digital world of mankind a better place!

Bitmain officially announced personnel changes. On March 26, Bitmain issued an internal letter announcing the organizational structure adjustment, with Wang Haichao as the company's CEO, and announced that the company will focus on digital currency and artificial intelligence chips and products and services based on them.

At the same time, Bitmain said that the company has sufficient cash and the supply chain is operating normally. With the launch of new products, sales performance has begun to increase month by month.

Bitmain stated that this round of IPO application will expire in the near future, and the listing work will be restarted at an appropriate time in the future.

The following is the full text of the internal letter:

Internal letter: Focus on computing chips to make the human digital world better!

Dear Bitmain people:

The bit in "Bitmain" is the smallest unit of computer information representation and the cornerstone of building the digital world of mankind. Making the digital world of mankind better and better is the vision of Bitmain at the beginning of its entrepreneurship.

On the occasion of Bitmain's fifth anniversary, we reviewed the company's business, organizational structure and management mechanism, and made corresponding business adjustments: focusing on digital currency and artificial intelligence chips and products and services based on them; establishing business lines such as Antminer, Suanfeng Chip, AI Computing Power, Ant Mining Pool, BTC.COM, and self-operated computing power. We decentralized management authority to quickly respond to market changes and better serve customers. We also integrated all R&D resource lines for chips, hardware and software, and digital currency and artificial intelligence products share the R&D resources after integration. In this way, the investment, delivery and quality of each project and product are better guaranteed. At the same time, engineers can also get more training and growth in different product lines.

The board of directors appointed Wang Haichao as the company's CEO. Wang Haichao has served as the head of multiple departments at Bitmain and has made significant contributions to the company's rapid expansion of supply chain capacity in 2017 and has achieved excellent work results. Zhan Ketuan continues to serve as the company's chairman and Wu Jihan continues to serve as the company's director. The two founders have not forgotten their original aspirations, and they are in the same boat, working together to jointly grasp the company's strategic direction.

In February, we released the second-generation 7nm chip BM1397, with an energy efficiency ratio as low as 30J/TH, which is about 28.6% energy-saving compared with the previous generation. The new Antminer S17 and T17 equipped with BM1397 will be mass-produced in the near future. The next-generation AI chip BM1684 will be put into production soon, and the SA5 server equipped with this chip will be delivered to the market in the fourth quarter of this year. Compared with the SA3 server based on the BM1682 chip, the performance of SA5 will be improved several times. At present, mainstream artificial intelligence algorithm manufacturers have run their algorithms and applications on our BM1682 and BM1880 chips.

Our IPO application will expire soon. However, the listing process makes the company more transparent and standardized. At present, the company has sufficient cash and the supply chain is operating normally. With the launch of new products, sales performance has begun to rise month by month. The company has a strong talent pool, and the adjusted R&D organization is more efficient. We will definitely be able to develop more competitive products in the market. According to Frost & Sullivan research, Bitmain is already the second largest fabless chip design company in China and one of the top ten in the world. In the future, we will restart the listing work at the right time.

In the past five years, the company has accurately seized the two market opportunities of digital currency and artificial intelligence and built a solid chip design capability. In the next three to five years, the market space for digital currency and blockchain industries will be even larger, and the market space for artificial intelligence computing power will also be huge. The two huge markets will overlap in the next three to five years. High-performance, low-power computing chips are their common foundation, and this is where our core competitiveness lies. We will concentrate all our human, material, financial and cultural resources on the two markets of digital currency and artificial intelligence: focus on computing chips to make the digital world of mankind better!

2019 is a year for Bitmain people to practice hard and strive for business. We are full of confidence in the future! Let us work together to create greater glory!

CEO: Wang Haichao

Co-founders: Micree Zhan, Jihan Wu

March 26, 2019