Forbes Interview with Wu Jihan: Firm Belief in Cryptocurrency Market Growing to Trillions of Dollars, Successful Transition from Bitmain to Matrixport

Co-founder of Bitmain, current chairman of BitDeer and Matrixport, Wu Jihan, spoke to Forbes about his outlook on the future of the cryptocurrency market and current business plans. Despite Bitmain's past struggles, Wu Jihan's belief in the future of crypto has led him to new opportunities.

Wu Jihan stated that volatility is inherent to cryptocurrencies, but in the long term, the growth potential of cryptocurrencies will far exceed their volatility. He believes, "Even if 95% of cryptocurrencies today become worthless overnight, the remaining 5% will still experience significant growth."

Review of Bitmain's Establishment and Departure

Jihan Wu first encountered Bitcoin over a decade ago when he was merely observing others using Bitcoin to purchase computer hardware and IT services on online forums like Bitcointalk.org. At that time, he recognized the significant potential of Bitcoin but understood that for it to gain widespread acceptance, Bitcoin needed a more robust infrastructure.

In 2013, Jihan Wu collaborated with Micree Zhan to establish Bitmain, a company specializing in manufacturing "mining equipment," specialized hardware that increases the computing power for mining Bitcoin. Owners of these mining devices can provide processing power over the internet to earn or mine new Bitcoins.

With the price of Bitcoin rising year after year, Bitmain saw great success, propelling Jihan Wu and Micree Zhan into the ranks of billionaires. According to Frost & Sullivan data, by 2018, Bitmain had become the world's largest cryptocurrency mining equipment supplier, holding 75% of the market share. The company was even preparing for a multi-billion dollar IPO in Hong Kong but faced a Bitcoin price crash, resulting in a 70% decrease in market value by the end of the year. Following the failed IPO, Bitmain faced significant financial pressure, leading to internal power struggles.

It wasn't until the end of last year when the two parties reached a settlement agreement that Jihan Wu stepped down from his positions as chairman and CEO of Bitmain but retained his ownership stake in the company. Micree Zhan took charge of Bitmain's manufacturing operations and another platform, Antpool.

After leaving Bitmain, Bitcoin surged past its previous highs in 2020. Despite China cracking down on mining activities and transactions, Bitmain has returned to profitability, continues to dominate the equipment market, and is focusing on overseas expansion and more efficient mining equipment.

Engaging in More Advanced Products

Jihan Wu believes that the future of cryptocurrency and blockchain will experience rapid growth, necessitating more sophisticated products to manage the wealth accumulated through digital assets. Consequently, in February 2019, he co-founded Matrixport with Ge Yuesheng, also from Bitmain, during a time when the market was still in turmoil.

Following his departure from Bitmain, Jihan Wu chaired two companies based in Singapore: Bitdeer, which announced plans to go public on Nasdaq with a valuation of $4 billion, and Matrixport, valued at $1 billion in its latest funding round.

Matrixport offers services such as custody, trading, lending, and structured products. Wu mentioned that Matrixport is the first company in the cryptocurrency industry to provide dual-currency products, ensuring a certain return on investment while allowing investors to choose one of two cryptocurrencies as the settlement currency based on current market prices. Matrixport states that the company currently manages and custody assets worth $10 billion, with an average monthly trading volume exceeding $5 billion.

Bitdeer is a mining platform that currently operates five mining pools in the United States and Norway, managing over 100,000 mining machines.

In hindsight, the decisions made by the two individuals at that time were indeed visionary. As of the deadline, the overall market value of cryptocurrencies has reached $2.3 trillion. A report by Crypto.com even indicates that the global cryptocurrency user base has more than doubled in the first half of this year, reaching 221 million people.

Currently, the cryptocurrency economy still faces regulatory uncertainties, but Jihan Wu believes that the industry will continue to innovate and expand due to its liberation from traditional financial constraints. He stated, "Innovations such as DeFi are remarkable, and technological innovations like cryptocurrencies and blockchain have created a new world, enabling fintech entrepreneurs to achieve tremendous success. Eventually, traditional financial institutions and regulatory bodies will adopt blockchain technology."