Top Secrets of Bitmain that You May Not Know: Jihan Wu’s Annual Salary was Only $27k, but Got $20.5 Million “Discretionary Bonuses” (III)
Bitmain is the world’s dominated crypto mining giant, its IPO has been seen as the largest IPO in the entire history of the IT market and draws much attention. People are also curious about secrets hiding behind the company.
Today, we are going to discuss the last 4 out of 10 inconspicuous secrets that hiding in its IPO financial statement. The other secrets are demonstrated in the previous articles.
1.Bitmain considered the useful life of their mining hardware is “no more than 6 months”
Bitmain used the straight line method over their estimated useful lives. After 180 days, they found the estimated residual value of their Bitcoin mining hardware is 30%.
The mining hardware industry has been in a state of high-speed iteration in recent years. However, the “no more than 6 months” useful life still shocked many people.
2.The gross profit of mining hardware sales is keep declining
In 2015, 2016, 2017 and the first half year of 2018, the overall gross profit margin of the was 58.4%, 55.3%, 46.2%, and 35.1%.
Bitmian indicated that, the significant decrease in their gross profit of mining hardware sales is mainly due to the fluctuations of the market price of cryptocurrencies.
3.Jihan Wu’s annual salary was only $27k, but got $20.479 million “discretionary bonuses”
According to the financial statement, both Jihan Wu and Micree Zhan’s annual salary in 2017 was only 27k US dollars.
However, their year-end bonuses are strikingly high. Jihan Wu and Micree Zhan got $20.479 million and $22,704 million in discretionary bonuses respectively in 2017.
4.Bitmain’s stock may become BCH’s ETF
After Bitmain launched its IPO prospectus, BCH price immediately surged by 23.7%.
Jiang Zhuoer, the founder of the world’s third-largest mining pool BTC.Top indicated that, Bitmain hoards huge amount of BCHs through the mining equipment sales and proprietary mining. Besides its Antminer business, the millions of BCH also has the investment value. To some extent, Bitmain’s stock can be seen as BCH’s ETH fund.
Mainly translating latest bookchain, cryptocurrency and mining news in China, as well as related Chinese regulatory policies for this industry.
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