Bitmain Internal Letters about Appointment of new CEO- Haichao Wang. IPO application is invalid

Dear Bitmainers:

The bit of “Bitmain” is the smallest unit of computing information representation and the cornerstone for building the human digital world. Making the digital world of mankind more and more beautiful is the vision of the beginning of Bitmain’s entrepreneurship.

On the fifth anniversary of Bitmain, we revisited the company’s business, organizational structure and management mechanisms, and made corresponding business adjustments: focusing on digital currency and artificial intelligence chips products and services based on this; Antminers, Sophon, , AI mining, Antpool, BTC.COM, self-operated miners and other business lines. We decentralized management rights to respond quickly to market changes and to better serve our customers. We also pull all R&D resource lines for chips, hardware and software, digital currency and artificial intelligence products share R&D resources after the pull. In this way, the input, delivery and quality of each project and product are better protected. At the same time, our engineers practised and grew in different product lines as well.

The board of directors have appointed Wang Haichao as the company’s new CEO. Wang Haichao served as the head of various departments in Bitmain, and made significant contributions to the company’s rapid expansion of supply chain capacity in 2017, with excellent work results. Zhan will continue to serve as the chairman of the company, and Wu will continue to serve as a director of the company. Our two founders did not forget their initial intentions, they will work together in the same boat, and joint hands to grasp the strategic direction of the company.

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% more energy efficient than the previous generation. The new Antminer S17 and T17 equipped with the BM1397 will be mass-produced in the near future. The next-generation AI chip BM1684 will be released soon, and the SA5 server equipped with this chip will be delivered to the market in the fourth quarter of this year. Compared to the SA3 server based on the BM1682 chip, the performance of the SA5 will increase several times. At present, mainstream artificial intelligence algorithm manufacturers have run their algorithms and applications on our BM1682 and BM1880 chips.

Our this round of IPO applications will expire soon. However, the process of listing makes the company more transparent and standardized. Currently, the company has sufficient cash and the supply chain is functioning properly. With the launch of new products, sales performance began to rise month by month. The company has a strong talent pool, and the adjusted R&D organization is more efficient. We will be able to develop more competitive products. According to Frost & Sullivan research, Bitmain is already the second largest in China and the world’s top ten fabless chip design company. 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 of the digital currency and blockchain industry will be even larger, and the market space for artificial intelligence computing is also huge. Two huge markets will be stacked in the next three to five years. High-performance, low-power computing chips are the common foundation, and this is where our core competitiveness lies. We will have no hesitation, concentrate all human, material, financial and cultural power in the two markets of digital currency and artificial intelligence: focus on the chip, make the human digital world a better place!

In 2019, it is a year for Bitmainers to work harder and harder. We are full of confidence in the future! Let us work together to create greater glories!

Issued:

CEO: Wang Haichao

Co-founder: Micree Zhan, Wu Jihan