Another Bitcoin Miner IPO on the Horizon? Founder Once Arrested

·

The bitcoin market is heating up again, with the price flirting with $40,000 — and where there’s a bull run, mining companies often follow. Speculation is mounting that MicroBT, the manufacturer behind the popular WhatsMiner series and the second-largest player in the bitcoin mining hardware market, is preparing for a U.S. stock exchange listing. According to blockchain industry reports, the company may be finalizing new funding rounds ahead of its public debut.

This potential IPO marks a significant moment for the crypto mining sector — especially considering the turbulent past of MicroBT’s founder, Yang Zuoxing, who was arrested in late 2019 amid a high-profile legal battle with rival mining giant Bitmain over alleged trade secret violations.

Founder's Legal Troubles: A Storied Rivalry

In December 2019, the Nanshan District Procuratorate in Shenzhen confirmed the arrest of a suspect identified only as “Yang Mouxing” on charges of embezzlement. Multiple financial media outlets quickly identified him as Yang Zuoxing, founder of MicroBT. He was released on bail before the Lunar New Year in 2020, but the status of the case remains unclear.

Yang’s journey into the mining world began at Bitmain, where he worked as a chip engineer. In 2016, a disagreement over equity compensation led to his departure. Yang later recounted that while co-founder Wu Jihan offered him 2% equity, Jian Ketuan (Bitmain’s other co-founder) only offered 0.5%. Feeling undervalued, Yang left to establish MicroBT, launching the WhatsMiner brand that would soon challenge Bitmain’s dominance.

👉 Discover how leading crypto innovators are shaping the future of digital mining.

The rivalry escalated into legal warfare. In 2017, Bitmain filed a lawsuit against Yang and MicroBT in the Urumqi Intermediate People’s Court over a patent titled “Series Power Supply Circuit, Virtual Digital Currency Mining Machine, and Computer Server.” The patent, owned by Canaan Creative’s subsidiary Sufang Technology, had been licensed to Bitmain.

Yang responded by challenging the patent’s validity at China’s Patent Reexamination Board. In April 2018, the board ruled that the patent was entirely invalid, leading to Bitmain’s defeat in court. Although Bitmain appealed, it later withdrew its case in November 2018.

Legal experts note that Bitmain lost not because Yang proved innocence, but because the foundational patent itself failed to hold up under scrutiny. This decision significantly weakened Bitmain’s legal position and opened doors for competitors like MicroBT to expand.

By 2019, MicroBT had captured an estimated 40% of the global mining hardware market, securing its place as a major industry force — despite ongoing litigation and internal turmoil within Bitmain.

Bold Predictions and Market Impact

Yang Zuoxing made headlines during his last major public appearance at a mining summit in Chengdu in September 2019. Speaking confidently about bitcoin’s future, he predicted:

“Based on current production capacity, Bitcoin’s network hash rate could reach around 120 exahashes (EH/s) this year. I believe bitcoin will eventually hit $1 million**, with a peak of **$110,000 by 2021.”

While those forecasts were met with skepticism at the time, bitcoin has since surpassed $60,000 in previous cycles and remains above $30,000 as of recent trading — validating some of his long-term bullish outlook.

Soaring Demand: Mining Hardware in High Demand

With bitcoin prices climbing past $41,000 recently, demand for mining equipment has surged. Industry insiders report a severe shortage of new miners, with major suppliers like Bitmain selling out across all models.

“Right now, every new machine is pre-sold — we’re booking deliveries for August or September,” said Bohe, founder of Miaomiao Mining Farm.

The top players dominating today’s mining hardware landscape include:

For retail investors unable to purchase physical hardware, cloud mining services have become an increasingly popular alternative. Platforms like Bitdeer (affiliated with Bitmain) report that most cloud hash rate packages are fully subscribed.

Even companies that struggled post-IPO are seeing renewed investor interest. Canaan Creative, the first publicly listed mining hardware maker, traded below $2 for much of 2020 but has since more than doubled in value. Similarly, **Ebang International** has recovered to trade above its IPO price of $5.23 — reflecting broader confidence in the sector.

Bitmain’s IPO Struggles and Internal Power Struggles

Bitmain’s own path to going public has been rocky. In September 2018, it filed for an IPO on the Hong Kong Stock Exchange, revealing impressive figures: $2.845 billion in revenue for H1 2018, with **94.3% coming from miner sales**. Net profit jumped nearly eightfold year-on-year to $743 million.

However, by March 2019, the application lapsed due to lack of progress. Hong Kong regulators reportedly questioned Bitmain’s shift toward AI chip development despite minimal revenue from that segment — raising concerns about business model sustainability.

👉 Explore how next-gen blockchain infrastructure is powering the future of finance.

Later that year, Bitmain reportedly submitted a confidential filing with the U.S. SEC through Deutsche Bank — but no further updates have emerged.

Meanwhile, a bitter power struggle between co-founders Wu Jihan and Jian Ketuan erupted publicly. After a year of corporate infighting, they reached a settlement in which Jian retained control of Bitmain’s operations, including Antpool and domestic mining farms, while Wu took over Btc.com and overseas mining assets — reportedly in exchange for a $600 million buyout.

FAQ: Your Questions Answered

Q: Is MicroBT really going public?
A: While no official filing has been confirmed, multiple blockchain news outlets report that MicroBT is actively preparing for a U.S. IPO and may be raising final-round funding.

Q: What happened to Yang Zuoxing after his arrest?
A: He was released on bail before Chinese New Year in 2020. The current status of his legal case has not been publicly disclosed.

Q: How big is MicroBT’s market share?
A: Estimates suggest MicroBT holds around 40% of the global bitcoin mining hardware market, making it second only to Bitmain.

Q: Why did Bitmain fail its Hong Kong IPO?
A: Regulators were skeptical about its pivot to AI without proven revenue, questioning the sustainability of its core mining business.

Q: Are new mining machines available for purchase?
A: Most major models from Bitmain, MicroBT, and others are sold out. Buyers often face wait times of several months due to high demand and supply constraints.

Q: Can individuals still profit from mining?
A: Yes, though profitability depends on electricity costs, hardware efficiency, and bitcoin’s price. Cloud mining offers an accessible entry point for beginners.

The Road Ahead for Crypto Mining

As bitcoin continues to mature as both an asset class and technological network, companies like MicroBT stand at the intersection of innovation and industrial scale. Despite legal challenges and market volatility, the demand for efficient mining solutions remains strong — driven by institutional adoption and long-term confidence in blockchain technology.

Whether MicroBT successfully goes public or not, its rise symbolizes a broader trend: the professionalization and globalization of cryptocurrency mining infrastructure.

👉 Stay ahead of the curve with insights into next-generation digital asset platforms.

Core Keywords: